By Bisi Bamishe
Insurance companies can start withdrawing the recapitalisation fund deposited in the escrow account kept with Central Bank of Nigeria (CBN) on or before September 30, 2026.
This was made known in Lagos today by the Commissioner for lnsurance,/CEO National Insurance Commission (NAICOM), Mr Olusegun Omosehin while addressing insurance editors at Radisson Blu.
Speaking at the Media Interactive Session on Developments in the Nigerian Insurance Sector, Omosehin who disclosed that N1.079tr was realised from the one year recapitalisation exercise, explained that while the funds remained the property of the operators, they were transferred from commercial banks to the CBN to verify their source and ensure compliance with anti-money laundering and counter-terrorism financing regulations.
Under NAICOM’s regulatory framework, insurers were required to maintain prescribed minimum capital levels, with the current framework providing for minimum capital of ₦15 billion for non-life insurance, ₦10 billion for life assurance and ₦35 billion for reinsurance.
At the end of the exercise, 50 insurance firms comprising of 48 insurance and two reinsurance companies successfully met the prescribed minimum capital requirements
Assuming that no policyholder would suffer as a result of the recapitalisation exercise, he noted that the capital raised through the exercise represented a significant achievement in the Commission’s drive to reposition the industry, strengthen the capacity of operators and enhance the sector’s contribution to the Nigerian economy.
According to him, the stronger capital base would enable insurance companies to underwrite larger and more complex risks, improve their capacity to meet policyholder obligations and retain more risks within Nigeria.
He added that the recapitalisation was also expected to enhance the industry’s ability to support major investments and economic activities while improving confidence in insurance as a critical component of the financial system.
The fresh capital is also expected to support greater retention of risks within the domestic market, reducing dependence on foreign capacity for risks that Nigerian insurers are increasingly able to underwrite.
Omosehin explained that the commission provided clear guidelines, timelines and regulatory requirements throughout the recapitalisation process.
The Commissioner added that NAICOM would continue to work with operators to ensure compliance with established regulatory requirements.
