NAICOM’s Failed Insurance Firms Dilemma
With recent conclusion of recapitalisation exercise in the insurance industry, NAICOM ‘s appointment of receivers and liquidators for the failed insurance firms has generated court actions against possible liquidation, writes
The recent conclusion of the recapitalisation exercise in the Nigerian insurance industry has led to NAICOM's appointment of receivers and liquidators for failed insurance firms. This has resulted in court actions against potential liquidation, marking a significant milestone for the National Insurance Commission (NAICOM) after two decades of failed recapitalisation attempts.
The present leadership, headed by Mr Olusegun Ayo Omosehin, is remembered for their determination to conduct a fair and conclusive recapitalisation after several inconclusive attempts by their predecessors. The Nigerian Insurance Industry Reform Act's (NIIRA) recommendation of a new capital base for the sector prompted Omosehin to ensure its implementation.
NAICOM released a standard recapitalisation guideline in September 2025, setting a 12-month period for firms to raise the new capital. Despite these efforts, some companies failed to meet the deadline and are now in court, while others are struggling to raise capital one month after the deadline. This has raised questions about the companies' actions in the past year and the potential consequences for the insurance sector.
Industry analysts are at a crossroads, debating whether to allow these companies to raise capital and remain in business or liquidate them to maintain the sector's integrity. Operators' views are split on the matter, with some emphasizing the need to maintain NAICOM's credibility and others arguing that ignoring the guidelines could lead to recklessness in future recapitalisation attempts.
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