Lagos: The National Insurance Commission (NAICOM) has announced that Nigerian insurers have shown a strong readiness to meet the recapitalisation requirements set forth by the Nigerian Insurance Industry Reform Act (NIIRA) 2025. This was disclosed by the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Omosehin, in a conversation with the News Agency of Nigeria (NAN) on Friday.
According to News Agency of Nigeria, the final deadline for insurance recapitalisation in Nigeria is July 2026, providing a 12-month window from the commencement of the reform Act. The new Act, which was signed into law by President Bola Tinubu earlier this year, aims to enhance the financial capacity of insurance institutions and ensure they can effectively manage large-scale risks, including those posed by climate change.
Omosehin revealed that NAICOM has already received recapitalisation plans from various industry players and expressed satisfaction with the level of compliance and enthusiasm among operators. He stated that one of the principal objectives of NIIRA 2025 is to create larger and better-capitalised institutions capable of enduring long-term challenges. He added that there has been notable interest from foreign investors eager to invest in the Nigerian insurance sector.
The positive responses from both local and foreign entities suggest that the insurance industry is gearing up for a more robust and sustainable future. Omosehin noted that these developments are indications of the sector’s preparedness to tackle emerging challenges, including those related to climate change.
The commissioner further explained that adequate capitalisation would allow Nigerian insurance firms to collaborate regionally and pool resources for more effective management of high-impact risks. Proper capitalisation would enable institutions to align with others across the continent to share and mitigate risks, particularly those associated with climate and environmental challenges.
Omosehin assured that NAICOM is closely monitoring the performance of insurance companies to ensure timely settlement of claims and adherence to financial obligations. He encouraged the media to continue highlighting the progress made under NIIRA 2025, emphasizing that the reform represents a new era for Nigeria’s insurance sector. The commissioner stressed that the recapitalisation exercise is about building stronger, more resilient institutions that can support national development and withstand future economic shocks.