The National Insurance Commission (NAICOM) has emphasised that the ongoing recapitalisation exercise in Nigeria's insurance sector is a critical step to prepare local operators for the competitive landscape of the African Continental Free Trade Area (AfCFTA). The regulator warned that only firms with strong capital bases will survive the demands of cross-border underwriting and new risks emerging across the continent.
Strategic Move for Continental Competitiveness
Speaking at the Continental Reinsurance Industry CEOs Roundtable in Lagos, NAICOM clarified that the capital raise is far more than a routine regulatory update. It is a strategic intervention designed to rebuild the industry's capacity, enhance solvency, and position Nigerian insurers for expansion across Africa. The event took place on 5 December 2025.
Delivering a message on behalf of the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, the Deputy Commissioner (Technical), Dr. Usman Jankara, outlined the benefits. He stated that the new capital thresholds will empower companies to underwrite larger and more complex risks. This shift will help retain premium income that currently flows out of the country and attract the long-term investment necessary for deeper market stability.
Building Foundations for Sustainable Growth
Jankara explained that stronger capital buffers are expected to drive a new wave of mergers and acquisitions, improve operational efficiency, and boost Nigeria's competitiveness. This is especially vital as AfCFTA creates wider opportunities for cross-border insurance and reinsurance services.
"Recapitalisation is the foundation for growth, not the finish line," Jankara remarked. He reaffirmed the critical minimum capital requirements: ₦10 billion for life insurers, ₦15 billion for non-life firms, and ₦35 billion for reinsurers. These levels are deemed essential for building companies capable of scaling sustainably across African markets.
He praised Continental Reinsurance for bringing industry leaders together under the theme, "Recapitalisation and Beyond: Rethinking Risk, Capacity and Collaboration for a Resilient Insurance Sector." He noted that this dialogue supports NAICOM's broader reform agenda focused on solvency, innovation, and long-term market resilience.
Expert Views on Transformation and Economic Impact
In a lead presentation, Bismarck Rewane, Managing Director of Financial Derivatives Company Limited, described recapitalisation as a transformative lever. He argued it would strengthen economic growth, improve the sector's ability to absorb climate-related risks, and deepen the capital market.
Rewane contended that a well-capitalised insurance industry would lead to several positive outcomes:
- Faster settlement of policyholder claims.
- Increased confidence from investors.
- Stimulation of new product innovation.
- Accelerated adoption of modern technology.
Dr. Fatai Lawal, Managing Director of Continental Reinsurance Plc, said the roundtable was organised to allow operators to assess progress, share insights, and define a unified path toward a stronger, future-ready industry. He noted that the theme accurately captures both the urgency and the significant opportunity facing the sector at this pivotal moment.
