NAICOM: Insurance Sector Raised Additional N1.079tn During Recapitalisation Exercise
Ebere Nwoji The National Insurance Commission (NAICOM), has said that the insurance sector raised a total of N1.079 trillion during the recently concluded recapitalisation exercise. The Commissioner for Insurance, Mr
The National Insurance Commission (NAICOM) reported that the Nigerian insurance sector raised N1.079 trillion during the recent recapitalisation exercise. Mr. Ayo Omosehin, the Commissioner for Insurance, announced this information while providing an update on the recapitalisation process to the media. The recapitalisation exercise complied with Minimum Capital Requirements (MCR) guidelines issued by NAICOM and the Nigerian Insurance Industry Reform Act (NIIRA 2025).
A total of 48 insurance companies and 2 reinsurance firms successfully raised the necessary capital and were relicensed. Out of these recaps, 24 companies raised funds through various means such as Rights Issues, private placement, public offer, special placement, and fresh equity injection. Some companies had already exceeded the minimum capital requirements before the exercise.
The funds for recapitalisation were held in Escrow Accounts at the Central Bank of Nigeria (CBN), as per NAICOM guidelines. Omosehin assured that the funds would be released to the recapped companies by September 30th, 2026. The recapitalisation resulted in 48 primary insurance underwriters and two reinsurance firms, better equipped to handle larger risks.
Six insurance licences were cancelled, including those of Nicon Insurance, Nigeria Reinsurance Corporation, Goldlink, Staco Insurance, Royal Exchange Prudential Insurance, and Universal Insurance. The Nigerian Agricultural Insurance Corporation (NAIC) was unable to meet the MCR and had its general insurance licence withdrawn. NAICOM assured that policyholders of the failed insurance firms would receive adequate protection, with liquidators appointed to manage the assets and meet policyholder obligations.
If the assets were insufficient, the Policyholders Protection Fund would cover the shortfall. The affected entities could no longer write insurance business as of August 1st, and policyholders would need to transfer their policies to existing licensed insurance companies. The recapitalisation exercise has now shifted focus to building a stronger, more financially capable insurance market.
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