Nigeria’s insurance sector is being repositioned as a key pillar for national economic growth, as the National Insurance Commission (NAICOM) moves to align its ongoing recapitalisation programme with the Federal Government’s ambition of building a one-trillion-dollar economy.
Speaking at NAICOM’s 2026 Management Retreat held in Akwa Ibom State, Olusegun Omosehin, commissioner for Insurance, said the recapitalisation exercise represents one of the most far-reaching regulatory reforms undertaken by the industry in decades, extending beyond capital accumulation to broader economic stabilisation objectives.
The retreat, themed “Insurance Regulation: Reset, Reimagine, Refocus,” brought together the commission’s leadership to reassess regulatory priorities and redefine the role of insurance within Nigeria’s evolving economic framework.
Omosehin explained that strengthening insurers’ financial capacity is essential to supporting large-scale economic expansion, improving investor confidence and ensuring that risk management mechanisms keep pace with national development ambitions.
According to him, the recapitalisation programme is designed to build financially resilient insurance institutions capable of underwriting larger risks associated with infrastructure development, industrial expansion and long-term investment projects expected under President Bola Tinubu’s economic transformation agenda.
He noted that a well-capitalised insurance sector plays a critical role in economic systems by absorbing shocks, protecting assets and enabling investment certainty, adding that weak balance sheets within the industry could limit its ability to support Nigeria’s growth aspirations.
“The success of this exercise will not merely be measured by increased capital levels but by credibility, transparency and professional execution,” Omosehin said, stressing that the process would be conducted without ambiguity, favouritism or regulatory compromise.
NAICOM’s renewed focus reflects a broader policy shift that positions insurance as a foundational component of financial system stability rather than a peripheral financial service.
Omosehin said the reform seeks to deepen insurance penetration, strengthen consumer protection frameworks and restore public confidence in the sector, outcomes viewed as necessary for mobilising long-term capital and supporting economic resilience.
Industry analysts have long argued that Nigeria’s low insurance penetration limits the economy’s capacity to manage risk effectively, particularly in sectors such as infrastructure, energy, agriculture and housing. By reinforcing insurers’ capital bases, regulators aim to create institutions capable of underwriting complex and high-value risks domestically rather than relying heavily on foreign markets.
The commissioner described the retreat as a defining moment in NAICOM’s nearly three-decade institutional history, signalling the beginning of a new regulatory era anchored on integrity, professionalism and coordinated leadership.
Regulatory reset and institutional reform
Central to NAICOM’s reform agenda is a shift toward modern regulatory practices that emphasise risk-based supervision, data analytics and technology-driven oversight.
Omosehin outlined priority areas for repositioning the industry, including stronger regulatory monitoring, disciplined execution of the recapitalisation roadmap, enhanced stakeholder engagement and improved internal technical capacity within the commission.
He also highlighted the importance of technology in expanding market development and improving regulatory efficiency, noting that evolving economic risks require more sophisticated supervisory tools.
Addressing management staff, he called for stronger institutional cohesion, warning that fragmented operations could undermine reform objectives.
“Let integrity be your anchor. Let professionalism be your compass. Let transparency be your operating standard,” he said, urging departments to eliminate operational silos and embrace collaboration in delivering regulatory outcomes.
Building resilience amid economic uncertainty
The recapitalisation initiative comes at a time when Nigeria’s economy faces multiple structural pressures, including inflationary trends, currency volatility and rising investment risks, factors that increase demand for stronger risk-management institutions.
NAICOM believes that improving insurers’ solvency positions will enable the industry to withstand economic shocks while supporting sustainable development goals.
Omosehin emphasised that collective commitment across the commission and industry stakeholders would be critical to achieving a recapitalisation process capable of safeguarding the future of Nigeria’s insurance market.
He added that beyond regulatory compliance, the reform represents an opportunity to redefine insurance as a driver of national progress, capable of protecting businesses, supporting innovation and strengthening economic confidence.
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