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The National Insurance Commission (NAICOM) has taken a major step toward strengthening Nigeria’s insurance sector with the inauguration of an 11-member committee to oversee the implementation of the industry’s recapitalisation programme. The move comes just a week after President Bola Ahmed Tinubu signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law, setting a new legal and operational framework for the country’s insurance market.
The committee, inaugurated on Tuesday in Abuja, is chaired by Mrs. Oluwatoyin Charles, NAICOM’s Director of Supervision. Its mandate is to ensure full compliance with the revised minimum capital requirements, promote transparency in capital sourcing, and safeguard the integrity of inflows into insurance firms.
Commissioner for Insurance, Mr. Olusegun Omosehin, described the recapitalisation process as “critical to the stability and growth of Nigeria’s insurance sector” and essential to the Federal Government’s ambition of achieving a $1 trillion economy. He urged committee members to “approach their work with professionalism, diligence, and commitment to the common interest,” assuring them of NAICOM’s full support throughout the process.
According to NAICOM, the committee will be responsible for:
Developing a comprehensive recapitalisation roadmap for the industry.
Drafting guidelines and circulars to support the recapitalisation process.
Recommending the composition of new minimum capital requirements for operators.
Identifying incentives and concessions from other regulatory bodies to facilitate compliance.
The committee will submit monthly progress reports to NAICOM’s management and quarterly updates to its Governing Board and stakeholders. The regulator expressed confidence that the committee’s work would “shape the future of Nigeria’s insurance sector” and help create a more resilient and competitive market.
The recently enacted NIIRA 2025 repeals and consolidates several outdated insurance laws into one modern legal framework. It introduces sweeping changes aimed at improving financial stability, consumer protection, and market efficiency. Key provisions include:
Stricter capital requirements for all insurance and reinsurance operators.
Mandatory enforcement of compulsory insurance policies to expand coverage.
Digitisation of insurance services to boost accessibility and transparency.
Faster claims settlement processes, with zero tolerance for delays.
Establishment of policyholder protection funds to safeguard consumers in cases of insolvency.
Broader participation in regional insurance initiatives such as the ECOWAS Brown Card Scheme.
Industry analysts say these reforms are expected to trigger mergers and acquisitions among smaller operators unable to meet the new capital thresholds, potentially leading to a leaner but more financially sound industry. The recapitalisation process, if effectively implemented, could also enhance investor confidence and attract foreign participation in Nigeria’s insurance market.
By implementing stricter oversight and capital requirements, NAICOM aims to ensure that operators have the financial resilience to meet obligations and expand market penetration. Currently, insurance penetration in Nigeria remains below 1% of GDP, far lower than the African average.
The commission believes that the recapitalisation process will not only protect policyholders but also create an enabling environment for innovation, new product development, and stronger international competitiveness.
The work of the newly inaugurated committee is expected to set the tone for Nigeria’s insurance sector over the next decade. If successful, it could mark the beginning of a new era for the industry—one defined by stronger institutions, increased consumer trust, and greater contribution to the nation’s economic growth.