BY NKECHI NAECHE-ESEZOBOR—The National Insurance Commission, (NAICOM), has called on industry leaders to look beyond the ongoing recapitalization exercise and embrace a big vision of resilience, innovation, and capacity building within Nigeria’s insurance sector.
The Commissioner for insurance, Olusegun Ayo Omosehin disclosed this while speaking at the 2025 Continental Re CEOs Roundtable, with the theme : “Recapitalization: Timelines, Target and Strategic Implication.”
In his remarks, the CFI acknowledged that Nigeria’s insurance sector stands at a pivotal moment. Despite progress in regulatory reforms and market development, he noted that insurance penetration remains below 1% of GDP—far behind global and regional benchmarks. Quoting the World Bank, he reminded participants that “financial resilience is not a luxury; it is a necessity for sustainable development.”
He outlined outlined the recapitalization framework under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which sets new Minimum Capital Requirements (MCR): N10 billion for Life Insurers; N15 billion for Non-Life Insurers35 billion for Reinsurers
He emphasized that compliance timelines are firm, transparent, and designed to ensure a smooth transition to a stronger capital regime. Submission of recapitalization plans is expected by 30 September 2025, followed by monthly progress reports, with final compliance slated for 30 July 2026.
To ensure credibility, he said the Commission will rely on Big 4 audit firms for capital verification — a move aimed at maintaining the integrity of the process.
While describing recapitalization as “the floor, not the ceiling,” the CFI urged insurers to invest in broader forms of capacity that will define their long-term resilience. These include: Strengthening technical expertise and actuarial capacity; Upgrading technology, data analytics, and digital distribution; Addressing emerging risks such as climate change, cyber threats, health crises, and supply-chain disruption and Embedding sustainability and ESG principles in underwriting and investment
He stressed that insurers must evolve from being “mere risk transferors to risk managers and mitigators,” arguing that innovation and human capital development will be just as critical as financial capital.
The NAICOM Boss predicted that the recapitalization exercise would reshape the industry through mergers, acquisitions, and the formation of stronger, more competitive entities. However, he highlighted that collaboration must extend beyond corporate restructuring.
He called for: Strategic reinsurance partnerships; Public-private collaborations to expand inclusive insurance; Joint efforts to mobilize capital, data, and expertise and Regional cooperation under the AfCFTA to unlock cross-border growth opportunities
With AfCFTA opening access to a market of 1.3 billion people, he said stronger Nigerian insurers will be better positioned to compete regionally and participate in large-scale infrastructure and trade-related risks.
He urged leaders to commit to transparency, trust-building, claims discipline, and customer-centric innovation. He emphasized that the end goal is not just regulatory compliance but the creation of a robust, shock-resistant, and globally competitive insurance sector aligned with Nigeria’s broader economic aspirations.
“Recapitalization is not an end; it is the beginning of a new era,” he said. “It is the foundation upon which we will build a resilient, innovative, and competitive insurance industry for the future.”
He assured participants, that the commission stands ready to partner with all stakeholders to drive the transformation forward.
