Joy Agwunobi
The National Insurance Commission (NAICOM) has formally inaugurated an 11-member Recapitalisation Committee to spearhead the implementation of Nigeria’s 2025 insurance industry recapitalisation programme, a reform initiative designed to strengthen the financial base of operators, enhance market stability, and align the sector with the Federal Government’s long-term economic vision.
The development follows President Bola Ahmed Tinubu’s recent assent to the Nigeria Insurance Industry Reform Act (NIIRA) 2025, a landmark legislation that introduces wide-ranging policy and regulatory measures aimed at repositioning the industry for greater transparency, innovation, and global competitiveness.
Chaired by Oluwatoyin Charles, NAICOM’s Director of Supervision, the committee’s core responsibility is to ensure that all insurance and reinsurance companies operating in Nigeria meet the revised capital requirements. It will also oversee the proper sourcing and verification of capital inflows, with emphasis on maintaining transparency, integrity, and accountability throughout the process.
Speaking at the inauguration ceremony in Abuja, Olusegun Ayo Omosehin, the commissioner for Insurance, highlighted the strategic role of recapitalisation in strengthening the industry’s stability and resilience. He stressed that the exercise is a key driver in achieving the Federal Government’s ambition of building a $1 trillion economy.
Omosehin urged members of the committee to approach their work with professionalism, diligence, and a deep commitment to the common interest of the sector. He assured them of the Commission’s unwavering support in providing the resources and enabling environment required to deliver on their mandate.
Under its terms of reference, the committee is expected to develop a comprehensive Recapitalisation Roadmap for both the Commission and the broader industry, outlining clear timelines, compliance frameworks, and monitoring mechanisms. It will prepare guidelines and circulars to direct the recapitalisation process, recommend the composition of Minimum Capital Requirements for different categories of operators, and identify incentives and concessions that may be negotiated with other regulatory authorities to ease the transition for industry players.
The committee will operate under a strict reporting framework, submitting monthly progress reports to NAICOM’s management and providing quarterly updates to the Governing Board and key stakeholders. This, according to the Commission, is to ensure that all parties remain aligned with the reform objectives and that the process remains transparent, consistent, and free from regulatory or operational ambiguities.
“The Committee will submit monthly progress reports to Management and provide quarterly updates to the Governing Board and stakeholders. NAICOM is confident that the Committee will successfully deliver on its mandate, shaping the future of Nigeria’s insurance sector,” the commission said.
NAICOM expressed confidence in the committee’s ability to deliver on its mandate, noting that its work would be critical to the industry’s future stability and growth. “The Committee’s success is vital to the stability and growth of the insurance sector, and NAICOM looks forward to collaborating with all stakeholders to achieve this objective. With the NIIRA 2025, NAICOM aims to position the insurance industry for greater transparency, innovation, and global competitiveness, aligning with the Federal Government’s vision of achieving a $1 trillion economy,” the statement read.
