Nigeria’s sweeping insurance recapitalisation effort is entering a decisive phase, with the National Insurance Commission (NAICOM) confirming that 18 insurance companies have formally indicated readiness to undergo capital verification one of the most critical steps in meeting new solvency requirements.
Speaking at the EY Insurance Summit 2025, NAICOM Commissioner for Insurance, Olusegun Omosehin, described the level of engagement from industry operators as “encouraging,” signalling growing momentum in the sector’s largest capital overhaul in over a decade.
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“As we speak, we have about 18 companies that have indicated their readiness for capital verification,” Omosehin said through his representative, Deputy Commissioner (Technical) Dr. Usman Jankara.
NAICOM Partners Big Four Auditors to Enforce Transparency
To safeguard the integrity of the recapitalisation process, NAICOM has introduced a capital verification framework backed by independent validation from Big Four audit firms, including EY.
Jankara noted that partnering global auditors will provide external assurance, help eliminate manipulation of financial records, and ultimately boost investor confidence in the industry.
“We’ve put in place a capital verification framework… partnering with the Big Four audit firms for independent verification of compliance,” he explained.
The collaboration signals NAICOM’s commitment to enforcing global standards in an industry historically constrained by weak capital positions and credibility concerns.
Key Recapitalisation Timeline
Insurance companies must now align with NAICOM’s strict compliance schedule:
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September 30, 2025 – Submission of recapitalisation plans
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November 2025 – June 2026 – Capital verification period
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July 30, 2026 – Final compliance deadline
Any insurer that fails to meet the minimum capital requirement by the final deadline risks losing its operating licence.
EY Calls for Industry-Wide Collaboration
At the summit, Ben Afudego, Partner and Consulting Leader (West Africa) at EY, urged insurers, regulators, and stakeholders to work collectively to strengthen the sector.
He emphasised that the recapitalisation exercise is an opportunity to reset the industry’s trajectory and accelerate its contribution to Nigeria’s economic development.
Why Recapitalisation Matters
The recapitalisation mandate announced in August significantly raises minimum capital thresholds:
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Non-life insurers: N3bn → N15bn
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Life insurers: N2bn → N10bn
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Reinsurers: N10bn → N35bn
The policy aims to:
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Improve risk-bearing capacity
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Strengthen claims settlement ability
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Enhance operational resilience
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Attract long-term investment
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Restore public trust in insurance
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Support sustainable sector growth
With capital verification set to begin, the coming months will determine which insurers are positioned for the future and which will struggle to survive in a more demanding regulatory landscape.
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