Joy Agwunobi
As Nigeria’s insurance industry braces for the July 2026 deadline to comply with new recapitalisation requirements under the Nigeria Insurance Industry Reform Act (NIIRA) 2025, industry leaders are stressing the urgent need for governance reforms to match the influx of fresh capital.
At the annual retreat of the Risk, Audit, and Compliance Committee (RACC), a technical arm of the Nigerian Insurers Association (NIA), held recently in Abeokuta, Ogun State, the Executive Director (Technical) of Continental Reinsurance Plc, Chukwuemeka Akwiwu, underscored the importance of embedding strong governance practices as insurers prepare to raise and manage fresh capital.
Speaking on the retreat’s theme, “Insurance Industry Recapitalisation: Strengthening Governance Activities for Maximum Benefits,” Akwiwu stressed that while the new capital thresholds would provide insurers with bigger balance sheets and greater underwriting capacity, governance would determine whether such capital is used to drive sustainable growth.
“With recapitalisation, we now have the capacity to underwrite more and take on larger risks,” Akwiwu said. “But that comes with the responsibility to ensure we are taking on the right risks, with proper exposure limits and necessary protections in place. Governance and control must guide this process.”
He noted that capital, though essential, can be transient unless it is stewarded responsibly. “Capital is fleeting; it comes and goes. But it is always willing to stay where strong governance structures are in place. Governance is the multiplier of capital. It doesn’t just preserve capital; it enhances its impact.”
Under the NIIRA Act 2025, insurance companies are required to meet new minimum capital levels: N10 billion for life insurers, N15 billion for non-life firms, N25 billion for composite insurers, and N35 billion for reinsurance companies. These reforms are widely seen as a necessary step to strengthen the sector’s resilience, enable insurers to take on bigger risks, and build credibility with both local and foreign stakeholders.
However, Akwiwu cautioned that capital infusion alone would not transform the industry. He called on boards and leadership teams to embed a culture of risk management and strategic oversight that goes beyond mere compliance.
“This is not business as usual,” he emphasised. “Every individual in the value chain must take ownership of the process and ensure that decisions are not made first and then justified later. Compliance must come first, not as a reaction, but as a guiding principle.”
Akwiwu also urged insurers to re-examine the composition of their boards, conduct skills-gap analyses, and ensure appointments are based on merit and the ability to add value. “Gone are the days of sitting on boards because your friend owns the company. You must bring value, expertise, and accountability,” he said.
Looking ahead, he expressed optimism about the sector’s ability to contribute to Nigeria’s broader economic ambitions. “Stronger capital, aligned with stronger governance, will not only stabilise our companies but increase public trust in our products and services, creating a cycle of growth and deeper penetration,” he said.
He further encouraged insurers to engage continuously with the industry regulator, the National Insurance Commission (NAICOM), to ensure transparency and alignment throughout the recapitalisation process. Collaboration, he said, will be key to overcoming the structural and operational hurdles that have historically slowed down reforms in the sector.
