Nigeria’s insurance industry, has emerged from its 12-month recapitalisation exercise with N1.079 trillion in a fresh capital injection, a development the National Insurance Commission (NAICOM) said could significantly expand the sector’s capacity to insure major infrastructure, energy and other strategic economic projects as the Federal Government pushes its $1 trillion economy ambition.
The Commissioner for Insurance, Olusegun Omosehin, at the weekend in a media interactive session in Lagos, said the outcome of the recapitalisation represented a major increase in the financial strength available to underwriters and reinsurers.
Omosehin said the exercise had produced “a total capital of N1.079 trillion,” challenging stakeholders to recognise the progress recorded through the reform.
The capital raised is currently domiciled in escrow accounts with the Central Bank of Nigeria (CBN),with the commissioner assuring that the funds would be released to the respective companies on or before September 30.
The development effectively shifts the industry’s challenge from raising capital to deploying it productively, particularly in an economy where huge infrastructure, energy, aviation, marine and industrial projects require stronger domestic risk-taking capacity.
For NAICOM, the objective of the recapitalisation goes beyond stronger balance sheets. The commission expects the additional capital to enable insurers to retain a greater proportion of risks locally, reduce dependence on offshore reinsurance and increase the industry’s contribution to economic development.
The exercise was triggered by the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which was signed into law by President Bola Ahmed Tinubu on July 31, 2025.
Under the new framework, insurers and reinsurers were required to meet substantially higher minimum capital thresholds within 12 months, with the transition period ending on July 31.
Operators responded through a combination of rights issues, private placements, public offerings, mergers, acquisitions and strategic investment to meet the new requirements.
NAICOM subjected the funds raised to a verification process, scrutinising admissible capital instruments, eligible assets and reporting requirements to ensure that only qualified capital was recognised.
At the end of the exercise, 50 underwriters and reinsurance companies were confirmed to have met the statutory minimum capital requirements.
The commission had initially announced 43 compliant companies on August 2. Following further review and the processing of late submissions, seven additional operators – five non-life and two life companies – were confirmed compliant, bringing the final tally to 48 insurance companies and two reinsurance companies.
The Nigerian Insurers Association(NIA)said the successful completion of the exercise had created a stronger foundation for the industry’s next phase of growth, while stressing that the additional capital must ultimately translate into stronger institutions and better value for policyholders.
NIA Chairman, Ebelechukwu Nwachukwu, has described the recapitalisation as a defining moment for the industry, noting that stronger capitalisation should result in improved service delivery and greater capacity to compete in the Nigerian and African markets.
Nwachukwu also commended NAICOM’s structured approach to the exercise, particularly the clarity of its regulatory guidelines, verification process and defined timelines, saying these provided operators with a credible framework within which to raise and validate the required capital.
