Abuja: The Chairman of the Nigerian Insurers Association (NIA), Mrs. Ebelechukwu Nwachukwu, announced that more than 70 percent of insurance companies have successfully completed the verification process in anticipation of the July 31 recapitalisation deadline. This statement was made during an interview with the News Agency of Nigeria (NAN) on Monday.
According to News Agency of Nigeria, the recapitalisation exercise, introduced by the National Insurance Commission (NAICOM), aims to bolster the financial strength of insurance firms. Nwachukwu explained that the exercise is in its final phase and follows a structured framework that specifies capital requirements and compliance expectations. Since December 2025, insurance companies have been submitting monthly updates on their capital status to NAICOM, highlighting changes due to business activities, claim settlements, and asset transactions.
The periodic reporting enables NAICOM to monitor the companies’ progress in the recapitalisation process. As part of the initiative, insurers have made statutory deposits with the Central Bank of Nigeria, accounting for 10 percent of the minimum capital requirement. Most member companies have complied with this mandate and presented payment evidence to the regulator.
A key component of the recapitalisation program involved an independent verification of companies’ capital standings. Auditors from the Big Four firms-KPMG, PwC, Deloitte, and EY-were appointed by the regulator to conduct this exercise. Nwachukwu confirmed that her company has completed verification, along with over 70 percent of the sector’s firms. She expressed confidence in the smooth progress of the recapitalisation process, with NAICOM expected to announce the results post-deadline.
Addressing potential sector consolidation, Nwachukwu mentioned that the regulator is working with companies facing capital challenges to ensure an orderly transition that protects policyholders’ interests. The recapitalisation initiative is expected to yield a more robust, well-capitalised insurance industry with enhanced capacity and public trust. The process may also spur strategic mergers and acquisitions, promoting long-term industry stability.
NAN further reports that NAICOM has declared the July 31 recapitalisation deadline as final, with no extensions. NAICOM’s Commissioner for Insurance, Mr. Olusegun Omosehin, reiterated the exercise’s importance in building a resilient market, emphasizing that operators must meet the new capital requirements or face regulatory consequences.