The National Insurance Commission (NAICOM) has issued a firm deadline, directing all insurance operators in Nigeria to integrate customers' National Identification Numbers (NIN) and Corporate Affairs Commission (CAC) details with their insurance policies. The commission has set April 30, 2026 as the final date for compliance, warning that companies which fail to adhere will face significant regulatory sanctions.
Details of the NAICOM Directive
The official directive was communicated through a circular signed by Mr. Olugbenga Jayesimi, the Deputy Director of the Market Conduct and Complaints Bureau. Addressed to the managing directors of all insurance and brokerage firms, the circular is titled “Re: Mandatory Submission of National Identification Number and Certificates of Incorporation as Material Information for All Insurance Contracts Including Group Life Cover.”
NAICOM has grounded this new requirement in its legal authority, citing Section 64(4) of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and its powers under the NAICOM Act of 1997. The primary objectives are to strengthen market transparency, enhance Know-Your-Customer (KYC) protocols, and effectively curb identity-related fraud and infractions within the industry.
Compliance Requirements and Potential Sanctions
According to the circular, insurance underwriters and brokers are now legally obligated to collect specific identification documents from their clients before initiating or renewing any insurance contract. The requirements are as follows:
- For individual customers: The National Identification Number (NIN) is mandatory.
- For corporate clients: Relevant CAC documents, including the certificate of incorporation, particulars of directors, and share allotment details, must be provided.
The Commission was unequivocal in its instructions, stating that insurers must reject ab initio any risk presented without these mandatory identification documents. It further emphasized that non-compliant operators will be subject to sanctions, though the specific penalties were not detailed in the announcement.
Industry Reactions to the Deadline
The directive has been met with support from key industry figures. Tope Daramola, the Executive Secretary of the Nigerian Council of Registered Insurance Brokers (NCRIB), described the move as “a necessary step toward sanitising the insurance database.”
Echoing this sentiment, an industry observer, Tunde Ogunbiyi, welcomed the deadline. He noted that the April 2026 date “gives operators ample time to integrate the required data infrastructure,” suggesting a period of adjustment is needed for the sector to adapt to these new regulatory demands seamlessly.
