The National Insurance Commission (NAICOM) has revealed that a total of eighteen insurance companies have formally indicated their readiness for the crucial capital verification process. This step is a core part of the ongoing industry-wide recapitalisation exercise designed to bolster the financial strength of Nigeria's insurance sector.
Early Movers and a Tightening Deadline
The disclosure was made in a lead paper presented at the recent EY Insurance summit held in Lagos. The Commissioner for Insurance, Olusegun Omosehin, represented by the Deputy Commissioner for Insurance (Finance and Administration), Usman Jankara, stated that the industry's response so far has been encouraging. However, with Nigeria having over 50 licensed insurance operators, the readiness of only 18 firms highlights a significant gap as the July 30, 2026 compliance deadline approaches.
This group of early movers includes a mix of the country's approximately 30 non-life insurers, 15 life insurers, and five reinsurers. NAICOM officials have stressed that this capital verification is not a routine check but a critical pillar of the recapitalisation strategy.
A Robust Framework for Transparency
Commissioner Omosehin explained that the commission has established a robust verification framework to ensure full transparency and credibility. As a key part of this process, NAICOM is collaborating with global audit firms, including EY and other members of the Big Four accounting networks. These firms will independently confirm that companies meet the new minimum capital requirements.
The revised capital framework, introduced in August 2025, significantly raised the bar:
- Non-life insurers saw their minimum capital raised from N2 billion to N10 billion.
- Reinsurers now require a minimum of N35 billion, up from N10 billion.
Market Signals and Industry Implications
An insurance sector analyst noted that the readiness of these 18 firms sends a powerful signal to the market. "Capital verification is effectively separating well-capitalised operators from those that have relied on thin buffers," the analyst said. "Investors will naturally gravitate towards companies that complete the process early because it reduces balance-sheet risk and improves long-term earnings visibility."
Industry leaders view this development as the starting point for an inevitable wave of consolidation. The Executive Secretary/CEO of the Nigerian Council of Registered Insurance Brokers (NCRIB), Tope Daramola, linked the recapitalisation directly to improved consumer trust. He pointed out that persistent delays in claims payments have damaged public perception of insurance for years.
"If recapitalisation is done properly, policyholders will feel the impact," Daramola asserted. "Better capital means a better ability to pay claims, and that is what ultimately grows the market." The successful verification of these 18 companies is therefore seen as a vital step towards a more resilient and trustworthy insurance industry in Nigeria.
