BY NKECHI NAECHE-ESEZOBOR—Following the successful conclusion of the Nigerian insurance industry recapitalisation exercise, 48 underwriting firms and two reinsurance companies scaled National Insurance Commission (NAICOM), minimum capital requirements as stipulated by NIIRA 2025.
While industry stakeholders have applauded the commission for a successful exercise, market observers remain surprised by the unexpected survival of some underwriters previously perceived as unviable.
Companies such as Fortis Global Insurance Plc Industrial And General Insurance (IGI), and Alliance & General Insurance PLC (A&G) successfully met NAICOM’s minimum capital requirements. While the likes of Universal Insurance Plc and STACO Insurance failed to meet the regulatory deadline.
Explaining the dynamics behind this, the immediate past President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Prince Oguntade, disclosed that strategic capital injections and corporate governance shifts saved several struggling firms.
According to him in most of those cases, fresh funds are being injected into management, and there is a lot of new capital entering the system,” Oguntade stated. “People are beginning to realize that insurance—much like banking—is being run by sound principles.
He noted that NIIRA 2025 and broader regulatory reforms have reshaped investor perception, positioning the sector as a highly lucrative asset class.
He said “the Insurance Act has brought so many critical issues to the fore. When you review the legislation, you realize that insurance is essentially the ‘new oil.’ As a result, many companies that previously suffered from poor management or inadequate premium collection practices are starting fresh and seeking new growth opportunities.”
Addressing why some prominent companies failed to meet the minimum capital requirements, he said “Some operators were perhaps overly confident that a simple rights issue would solve their capital needs—take cases like Universal Insurance and others, for instance.”
“But with the government holding a significant stake—acting almost as both an investor and the regulator—the 2025 Insurance Bill has taken on a life of its own. That is the broader shift we are seeing across the market.”
On the way forward for the industry, he expressed optimism that the successful recapitalisation would lead to increased market maturity, driving specialized products tailored to global realities.
“Insurance is rapidly becoming a cornerstone of this economy. The new regulatory landscape is here to stay, and because of that, you are going to see a wave of innovation. We will witness major market shifts, including increased demand for private insurance and dollar-denominated policies.’
