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NAICOM to Release Funds in Escrow Account to Insurers by September 30

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BY NKECHI NAECHE-ESEZOBOR—The National Insurance Commission, (NAICOM) on Friday said it will release deposited funds in Escrow with the Central Bank of Nigeria to  insurance companies by 30th of September, 2026.

The Commissioner for Insurance and Chief Executive officer, Mr. Olusegun  Ayo Omosehin, disclosed this today at the  NAICOM Media Interactive Session On Developments in the Nigerian Insurance Sector

Omosehin submitted that the raised capital which are deposited in escrow account of Central Bank of Nigeria (CBN) will be transferred to the insurance companies.

‎”However,  we will keep our binoculars open to see where those monies will be deployed to, because we have oversight over how they move those funds. But by ending of September, the money will be released through the entities. I think that was the last question.”

Following the enactment of NIIRA 2025, the Commission commenced a structured implementation process to provide strategic oversight, ensure transparency, support operators throughout the transition, and facilitate the effective implementation of the new minimum capital requirements within the statutory compliance period.

To ensure an orderly, transparent, credible, and verifiable process, the Commission issued the Guidelines on the Implementation of Minimum Capital Requirements (MCR) for Insurance and Reinsurance Companies in Nigeria. The Guidelines provided detailed guidance on the statutory minimum capital requirements under NIIRA 2025, eligible and ineligible capital instruments, admissible and non-admissible assets, verification and validation procedures, regulatory timelines, reporting obligations, and supervisory expectations throughout the implementation period.

Through a comprehensive process of review, verification, and validation, the recapitalization exercise has delivered a major boost to the Nigerian insurance industry. It has enhanced the financial resilience of operators, attracted substantial domestic and foreign investment, and rekindled strong investor confidence.

The verified outcome of the exercise indicates that 48 insurance and two reinsurance companies successfully met the prescribed Minimum Capital Requirements.

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