The Nigerian Insurers Association (NIA) has attributed the successful recapitalisation of the insurance sector to the regulatory framework introduced by the National Insurance Commission (NAICOM). The NIA stated that the rules, which required insurers to meet new minimum capital thresholds, were instrumental in driving the exercise.
Recapitalisation Achievements
According to the NIA, the recapitalisation exercise, which concluded in 2025, saw insurance companies raise over N1 trillion in additional capital. The association noted that this was a significant achievement, given the challenging economic environment.
The NIA's Director-General, Mrs. Yetunde Ilori, said: "The recapitalisation was a success because of the clear and consistent guidelines provided by NAICOM. This gave insurers the confidence to raise the necessary funds."
Impact on the Industry
The recapitalisation has strengthened the financial capacity of insurance firms, enabling them to underwrite larger risks and compete more effectively. It has also boosted policyholder confidence, as companies are now better positioned to meet claims obligations.
Industry analysts note that the exercise has led to consolidation, with some smaller firms merging to meet the new capital requirements. This has resulted in a more robust and resilient insurance sector.
NAICOM's Role
NAICOM, the industry regulator, set the new capital requirements in 2023, giving insurers a two-year window to comply. The commission's proactive approach, including regular monitoring and enforcement, was crucial in ensuring compliance.
The NIA praised NAICOM's leadership in driving the recapitalisation, noting that it has set a precedent for other sectors in Nigeria.
