The National Insurance Commission (NAICOM) has affirmed that there will be no extension of the ongoing recapitalisation exercise in the Nigerian insurance industry, stressing that the deadline is fixed by law.
Dr Usman Jankara, NAICOM’s Deputy Commissioner for Insurance (Technical), who represented the Commissioner for Insurance and CEO, Mr Olusegun Omosehin, at a seminar for insurance journalists in Abuja on Tuesday, made the commission’s position clear.
“I would like to state unequivocally that the recapitalisation deadline will not be extended. The basic reason is this: it is the law,” Jankara said. He added that any change would require a fresh legislative process and presidential assent.
The Nigerian Insurance Industry Reform Act (NIRA) 2025 sets the deadline for the exercise as July 30, 2026. Jankara expressed confidence that the deadline is achievable for serious industry players.
“We believe that the deadline as clearly highlighted by NIRA is doable, it is reasonable, and it is something serious players within the insurance sector will be able to meet within that time frame,” he said. He added that the exercise would produce stronger, well-managed insurance companies with the financial capacity to meet obligations to Nigerians.
The seminar, which Jankara described as a strategic platform for strengthening engagement between NAICOM and the media, aimed to improve collaboration, accurate reporting, and public understanding of reforms in the insurance sector.
Under its current leadership, NAICOM has introduced reforms balancing prudential oversight with innovation, including risk-based supervision of high-risk institutions, improved market conduct, quicker claims settlements, and a zero-tolerance policy for unresolved complaints. The commission is also promoting inclusive growth through microinsurance, takaful, insurtech, and MSME-focused products, supported by a dedicated technology directorate, innovation hub, and regulatory sandbox.
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Jankara highlighted NAICOM’s collaboration with the Nigeria Police Force to enforce compulsory third-party motor insurance and strengthen systemic resilience, saying these efforts are gradually improving public perception and trust in insurance.
Describing the recapitalisation exercise as a structural reset for the market, Jankara noted that NAICOM is introducing a risk-based capital framework and engaging the Big Four auditing firms for independent capital verification to ensure confidence and fairness.
The NIRA 2025, signed into law in August 2025, replaces outdated legislation and significantly raises minimum capital requirements while establishing a risk-based capital regime. The Act also strengthens consumer protection, market conduct, and creates an Insurance Policyholders’ Protection Fund to safeguard policyholders in cases of insolvency.
Looking ahead, NAICOM plans to intensify consumer protection, enhance supervision, expand data analytics, deepen insurance penetration, and promote sustainability and innovation in the sector.