The National Insurance Commission says insurers have shown strong readiness ahead of the Nigerian Insurance Industry Reform Act implementation in 2025.
Speaking at the EY Insurance Summit in Lagos on Thursday, Commissioner for Insurance Olusegun Omosehin said many insurers had signalled readiness for capital verification under the law.
Omosehin, represented by Deputy Commissioner Usman Jankara, said several boards had approved strategies to meet the new requirements.
He said these strategies included fresh capital injections, mergers, and operational restructuring across the industry.
He confirmed that NAICOM had completed its review of all recapitalisation plans submitted by operators.
Omosehin added that formal feedback had been issued to each institution for further action.
He described the response as encouraging and reflective of a shared commitment to transformation.
“Since the Act came into force, NAICOM has taken steps to ensure clarity and transparent implementation,” he said.
He said guidelines had been issued on admissible assets, liabilities, and compliance timelines under the minimum capital framework.
He added that new guidelines on reinsurance had also been released for industry compliance.
The commissioner said many insurers had shown readiness for capital verification under the NIIRA regime.
He added that boards had approved plans for capital raises, mergers, and restructuring efforts.
“The commission has reviewed recapitalisation plans and issued feedback to the relevant institutions,” he said.
Omosehin noted, however, that operators still faced challenges in meeting the requirements.
He listed inflation, foreign exchange instability, merger complexities and capacity gaps as key concerns.
He said NAICOM remained committed to providing clarity while supporting innovation within safe regulatory limits.
Omosehin said the commission aimed to build a resilient, competitive and technology-driven insurance sector.
He listed digital transformation, ESG integration and stronger data analytics as growth pillars.
Omosehin stressed the importance of audit integrity in the recapitalisation process.
He said NAICOM had partnered with Big Four firms for independent verification of minimum capital compliance.
He said the commission would implement the Risk-Based Capital framework once the capital exercise was completed.
The commissioner added that the RBC toolkit and framework were almost ready for industry rollout.
He said IFRS 17 had increased valuation complexities, making actuarial capacity more important.
He said NAICOM was finalising plans to engage an actuary to strengthen regulatory analytics.
Omosehin urged insurers to meet reporting timelines and adopt stronger risk management practices.
He also encouraged them to embrace technology to improve efficiency and competitiveness.
He called on actuaries, auditors, brokers and technology partners to support the reform effort.
Omosehin reaffirmed NAICOM’s commitment to strengthening trust and stability in the sector.
He said NIIRA 2025 marked a shared commitment to resilience and innovation in the industry.
“Let us seize this moment as a strategic opportunity to redefine the future of insurance,” he said.
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