By Oluwakemi Kindness
The National Insurance Commission (NAICOM) has declared that there will be no extension of the July 30, 2026 recapitalisation deadline for insurance companies operating in Nigeria.
The Commissioner for Insurance, Olusegun Ayo-Omosehin, stated this on Tuesday in Abuja while speaking at a seminar for insurance journalists.
He was represented at the event by the Deputy Commissioner for Technical Operations, Dr. Usman Jankara.
Omosehin said the deadline is backed by law, stressing that the recapitalisation exercise derives its authority from the Nigerian Insurance Industry Reform Act (NIIRA) 2025, an Act of Parliament, making any extension impossible.
According to him, the ongoing recapitalisation is designed to reposition Nigeria’s insurance industry for global relevance, by producing stronger, more resilient insurers capable of underwriting complex risks and supporting national economic development.
He explained that NAICOM is also introducing a Risk-Based Capital (RBC) framework, which will align insurers’ capital requirements with the nature and scale of the risks they undertake, rather than relying solely on fixed minimum capital thresholds.
To enhance transparency and credibility in the process, Jankara disclosed that the Commission is working with Big Four auditing firms to independently verify the capital positions of insurance companies.
He described the recapitalisation exercise as more than a regulatory requirement, noting that it is a transformational reform aligned with the Federal Government’s ambition of building a $1 trillion economy.
On consumer protection, Jankara said NAICOM has adopted a zero-tolerance policy for delayed or unpaid claims, emphasising that prompt claims settlement is critical to restoring public confidence in insurance.
He added that the Commission has strengthened market conduct supervision to ensure fair sales practices, faster resolution of complaints, and strict sanctions against insurers that fail to meet their obligations to policyholders.
As part of efforts to protect the public, Jankara also announced intensified enforcement of compulsory third-party motor insurance, in collaboration with the Nigeria Police Force.
He said the enforcement drive is aimed at guaranteeing compensation for accident victims, improving compliance with insurance laws, and curbing the circulation of fake insurance policies.
According to him, the combined reforms, recapitalisation, enhanced consumer protection, and compulsory insurance enforcement are intended to rebuild trust in the insurance sector and reposition it as a reliable tool for financial protection and economic stability.
