Business A.M
No Result
View All Result
Saturday, October 17, 2026
  • Login
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • ONLINE & DIGITAL CONTENT PACKAGE
Subscribe
Business A.M
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • ONLINE & DIGITAL CONTENT PACKAGE
No Result
View All Result
Business A.M
No Result
View All Result
Home Insurance & Pension Business

Insurance recapitalisation gives insurers greater capacity to take on risk-NIA

by Joy Agwunobi
August 18, 2026
in Insurance & Pension Business
NIA bets on innovation to rewrite Nigeria’s insurance story

The Nigerian Insurers Association (NIA) has commended the successful conclusion of the insurance industry’s recapitalisation exercise, saying the process has left the sector stronger, better capitalised and positioned to support greater economic growth.

The association, in a statement issued by its Governing Council, congratulated the additional seven insurance companies recently granted full recapitalisation approval by the National Insurance Commission (NAICOM).

Ebelechukwu Nwachukwu, the chairman of the association, said the latest approvals represented a significant milestone for the industry and reflected the sector’s progress towards building a more resilient, competitive and trusted insurance market.

She said the seven companies had successfully completed NAICOM’s final verification process, joining previously approved insurers and reinsurers that had demonstrated their ability to meet the new capital requirements.

“Having successfully navigated the rigorous final verification process, these companies, alongside the earlier approved 41 insurance companies and two reinsurance companies, have demonstrated exceptional resilience, corporate fortitude and financial discipline,” Nwachukwu said.

According to her, the recapitalisation process had strengthened the financial position of participating companies and enhanced their capacity to deliver greater value to policyholders and other stakeholders.

Nwachukwu also commended NAICOM for its regulatory oversight throughout the recapitalisation exercise, describing the commission’s approach as critical to maintaining market integrity and ensuring that operators met the requirements of the new regulatory framework.

She said the regulator’s “strategic foresight and structured execution” had contributed to the emergence of a stronger and more resilient insurance industry capable of competing within the broader financial sector.

The NIA chairman further reaffirmed the association’s commitment to supporting its members as the industry transitions from the recapitalisation exercise to the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

“The NIA remains dedicated to driving the seamless implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025. We will continue to assist members in fulfilling evolving regulatory obligations and strengthen our strategic partnership with NAICOM to build a sustainable, future-ready sector,” she said.

The association said the completion of the recapitalisation exercise should also strengthen confidence among policyholders, investors and other stakeholders, while improving insurers’ capacity to underwrite larger risks and support economic activity.

Nwachukwu said the industry was now better positioned to settle genuine claims promptly, absorb higher local and international risks and contribute more significantly to financial stability.

“With this recapitalisation complete, the Nigerian insurance sector enters a transformative era. The industry is fully equipped to settle genuine claims promptly, absorb higher local and international risks, and serve as a cornerstone of financial stability, directly supporting President Bola Ahmed Tinubu’s vision of achieving a $1 trillion economy by 2030,” she said.

Joy Agwunobi
Joy Agwunobi
Previous Post

Seven insurers missing from NAICOM’s 50-firm compliance list

Next Post

Nigerian worker faces 30-year wait for home deposit — study

Next Post
Nigerian worker faces 30-year wait for home deposit — study

Nigerian worker faces 30-year wait for home deposit — study

  • Trending
  • Comments
  • Latest

How UNESCO got it wrong in Africa

May 30, 2017

CBN to issue N1.5bn loan for youth led agric expansion in Plateau

July 29, 2025
MMA2 enters new commercial era after 20-year concession dispute

MMA2 enters new commercial era after 20-year concession dispute

August 28, 2026
NGX taps tech advancements to drive N4.63tr capital growth in H1

Insurance-fuelled rally pushes NGX to record high

August 8, 2025

6 MLB teams that could use upgrades at the trade deadline

Top NFL Draft picks react to their Madden NFL 16 ratings

Paul Pierce said there was ‘no way’ he could play for Lakers

Arian Foster agrees to buy books for a fan after he asked on Twitter

Rivers, China's CNCECC sign deal for $3.5bn methanol, fertiliser plant

Rivers, China’s CNCECC sign deal for $3.5bn methanol, fertiliser plant

October 17, 2026
Methane rules spread across 67% of global production as Nigeria faces compliance test 

Methane rules spread across 67% of global production as Nigeria faces compliance test 

October 17, 2026
Onafriq, a pan-African payments company, is set to discontinue its Baxi agent banking business in Nigeria after five years, citing naira depreciation, rising operating costs and intensifying competition that have weakened the segment’s profitability. The planned shutdown will affect the agent banking operations conducted through Baxi under Onafriq Nigeria Payments Limited. However, the decision does not signal the company’s withdrawal from Nigeria, as it intends to retain its cross-border payments network and card issuing services in the country. In a statement, Onafriq said changes in Nigeria’s operating environment since 2024 had significantly altered the economics of its offline agent banking business, making the existing model unsustainable. The move marks a strategic shift for the company, which entered Nigeria’s agent banking market to expand access to financial services through a network of agents providing transaction services outside traditional bank branches. Onafriq attributed the decision to a combination of macroeconomic pressures and structural changes in the country’s payments industry. According to the company, naira depreciation and inflation have affected transaction volumes, increased operating expenses and undermined the sustainability of its agent banking operations. The growing adoption of instant account-to-account transfers has also changed the mix of transactions handled by agents, while heightened competition among payment service providers has put further pressure on margins. These developments have made it increasingly difficult for the business to remain viable under its existing operating structure, prompting the company to reassess its long-term strategy. Dare Okoudjou, founder and chief executive officer of Onafriq, said the decision to close the business was difficult, particularly given the efforts of employees, agents and business partners who helped build the Baxi network. “We entered Nigeria with conviction and commitment, but did not achieve the outcome we set out for. Closing this business was a difficult decision to arrive at, one that affects colleagues, agents, and business partners across Nigeria who poured their hearts and soul into building out the Baxi network,” Okoudjou said. Despite the closure, he reaffirmed the company’s commitment to the Nigerian market, noting that the group would continue to serve customers through its payments network and card issuing operations. Onafriq entered Nigeria’s agent banking market in 2021 through the acquisition of Baxi, also known as Capricorn Digital Limited. The company said it continued investing in the business through 2023, with efforts focused on expanding and strengthening its agent network. However, a subsequent review of the business’s long-term prospects and financial sustainability led to the decision to wind down the operation. As part of the transition, Onafriq said agents onboarded through the Baxi platform had been moved to another principal bank, a step intended to facilitate continuity for the affected agents. The company has also directed agents to transfer their funds to their preferred principal bank within 30 days, adding that its teams would provide support throughout the transition process. Employees whose roles are linked to the agent banking business will also be consulted and supported during the wind-down, with Onafriq pledging to treat affected workers fairly.

Onafriq winds down Baxi as Nigeria’s agent banking economics worsen

October 17, 2026
LCFE links petroleum trading to capital market in pricing transparency drive

LCFE links petroleum trading to capital market in pricing transparency drive

October 17, 2026

Popular News

  • How UNESCO got it wrong in Africa

    0 shares
    Share 0 Tweet 0
  • CBN to issue N1.5bn loan for youth led agric expansion in Plateau

    0 shares
    Share 0 Tweet 0
  • MMA2 enters new commercial era after 20-year concession dispute

    0 shares
    Share 0 Tweet 0
  • Insurance-fuelled rally pushes NGX to record high

    0 shares
    Share 0 Tweet 0
  • Glo, Dangote, Airtel, 7 others prequalified to bid for 9Mobile acquisition

    0 shares
    Share 0 Tweet 0
Currently Playing

CNN on Nigeria Aviation

CNN on Nigeria Aviation

Business AM TV

Edeme Kelikume Interview With Business AM TV

Business AM TV

Business A M 2021 Mutual Funds Outlook And Award Promo Video

Business AM TV

Recent News

Rivers, China's CNCECC sign deal for $3.5bn methanol, fertiliser plant

Rivers, China’s CNCECC sign deal for $3.5bn methanol, fertiliser plant

October 17, 2026
Methane rules spread across 67% of global production as Nigeria faces compliance test 

Methane rules spread across 67% of global production as Nigeria faces compliance test 

October 17, 2026

Categories

  • Frontpage
  • Analyst Insight
  • Business AM TV
  • Comments
  • Commodities
  • Finance
  • Markets
  • Technology
  • The Business Traveller & Hospitality
  • World Business & Economy

Site Navigation

  • Home
  • About Us
  • Contact Us
  • Privacy & Policy
Business A.M

BusinessAMLive (businessamlive.com) is a leading online business news and information platform focused on providing timely, insightful and comprehensive coverage of economic, financial, and business developments in Nigeria, Africa and around the world.

© 2026 Business A.M

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • ONLINE & DIGITAL CONTENT PACKAGE

© 2026 Business A.M