Over 70% of insurers meet requirement ahead of July 31 deadline
More than 70% of insurance companies in Nigeria have completed the independent verification exercise required under the industry’s recapitalisation programme, as operators race to meet the July 31 deadline set by the National Insurance Commission (NAICOM).
The update was disclosed by the Chairman of the Nigerian Insurers Association (NIA), Mrs. Ebelechukwu Nwachukwu, in an interview. She said the recapitalisation programme has now entered its final stage.
The recapitalisation exercise, introduced by NAICOM, is aimed at strengthening the financial capacity of insurance companies by ensuring they meet higher minimum capital requirements, thereby improving the industry’s resilience and ability to settle claims.
Nwachukwu said the recapitalisation exercise has progressed smoothly, with most insurance companies already completing one of its most critical requirements—the independent verification of their capital positions. “We have all paid for these processes, and my company has been verified. More than 70 per cent of the companies have completed the verification exercise,” she said.
She explained that since December 2025, insurers have been submitting monthly reports to NAICOM detailing changes in their capital positions resulting from business activities, claims settlements, and asset transactions, enabling the regulator to monitor compliance throughout the exercise. According to her, insurers were also required to lodge statutory deposits with the Central Bank of Nigeria (CBN) amounting to 10% of the new minimum capital requirement, with the majority of member companies already meeting the obligation and submitting evidence to the regulator.
Nwachukwu added that independent verification is being conducted by auditors from the Big Four accounting firms—KPMG, PwC, Deloitte and EY—while NAICOM is expected to announce the outcome of the recapitalisation exercise after the July 31 deadline. She noted that the regulator has continued engaging companies facing capital shortfalls to ensure an orderly transition that protects policyholders, adding that the exercise is expected to produce a stronger, better-capitalised insurance industry while encouraging strategic mergers and acquisitions where necessary.
The latest update comes as the insurance industry enters the final stretch of one of its biggest regulatory reforms in years, with operators required to significantly strengthen their capital base. The recapitalisation programme is expected to improve insurers’ capacity to underwrite larger risks, enhance claims-paying ability, boost public confidence in the sector, and position Nigerian insurance companies to compete more effectively both locally and internationally.
The compliance drive has already prompted several insurers to raise fresh capital ahead of the deadline. On Monday, Linkage Assurance Plc announced it had successfully completed a N16.2 billion Rights Issue, enabling the company to meet NAICOM’s minimum capital requirement before the July 31 deadline.
Industry observers also expect the recapitalisation exercise to trigger another wave of mergers, acquisitions and strategic partnerships among companies unable to meet the new capital requirements independently.
NAICOM has maintained that the July 31, 2026 recapitalisation deadline is final, ruling out any extension for insurance companies yet to meet the revised capital requirements.
In May, the Commissioner for Insurance, Olusegun Omosehin, said that NAICOM is committed to preventing the collapse of any licensed insurance company in Nigeria.
The recapitalisation exercise follows the enactment of the Nigerian Insurance Industry Reform Act, 2025, which significantly increased the minimum capital thresholds across the industry.
Under the new regime, non-life insurers are required to raise their minimum capital from N3 billion to N15 billion, life insurers from N2 billion to N10 billion, while reinsurers must increase theirs from N10 billion to N35 billion.