Nigeria’s ongoing insurance industry recapitalisation programme has gained new momentum following a strengthened partnership between the National Insurance Commission (NAICOM) and the Securities and Exchange Commission (SEC). The collaboration, announced on Tuesday in Abuja, is expected to fast-track reforms, enhance investor confidence, and reposition the sector for sustainable growth.
The meeting, held at SEC headquarters, saw Commissioner for Insurance, Mr. Olusegun Omosehin, lead a NAICOM delegation to the SEC Director-General, Mr. Emomotimi Agama.
Both regulators pledged closer synergy to ensure the success of the recapitalisation process, which is now backed by legislation under the Nigeria Insurance Industry Reform Act 2025 signed by President Bola Tinubu.
According to Mr. Agama, the new Act signals “a new dawn for the insurance industry,” providing the legal foundation needed to strengthen regulation and attract long-term investments.
He noted that insurance, often regarded as an underperforming arm of Nigeria’s financial services industry, now has a rare opportunity to consolidate, innovate, and expand its role in economic development.
“The recapitalisation exercise is not merely regulatory enforcement; it is about ensuring that insurance operators have the financial strength to deliver on their obligations to policyholders while driving market penetration,” Agama said.
He added that SEC would offer full technical support, including knowledge-sharing, capital market integration, and digital transformation strategies, to help insurance operators meet new capital requirements.
In his remarks, Mr. Omosehin stressed that recapitalisation has moved beyond being a discretionary policy and has now become a legislative mandate.
He explained that the initiative aims to restructure and strengthen insurance firms, ensuring that they are resilient enough to withstand economic shocks while delivering better products and services to Nigerians.
“The industry must be positioned for growth, competitiveness, and trust. Stronger institutions mean better claims settlement, enhanced innovation, and improved contribution to GDP,” he said.
Omosehin further revealed that NAICOM is actively engaging other regulators, including the Corporate Affairs Commission (CAC) and the Federal Inland Revenue Service (FIRS), to secure tax concessions and compliance incentives that will ease the recapitalisation burden on insurance operators.
Highlighting SEC’s progress in digitalisation, Mr. Agama urged insurance companies to embrace technology for improved efficiency.
He argued that digitisation would not only cut costs but also make insurance products more accessible to Nigeria’s largely underserved population.
With penetration rates in Nigeria still below 1% of GDP—far lower than peers such as South Africa (12%)—industry analysts say technology adoption and stronger regulation are key to unlocking the sector’s vast potential.
Experts note that successful recapitalisation could transform Nigeria’s insurance industry into a growth engine for the wider financial ecosystem.
Higher capital thresholds are expected to attract foreign investors, strengthen reinsurance capacity, and boost confidence among corporate clients.
Furthermore, insurance is increasingly seen as a catalyst for economic resilience, particularly in sectors such as agriculture, infrastructure, and SMEs, where risks are high but coverage remains limited.
By working with SEC, NAICOM hopes to expand capital market access for insurers and deepen the pool of long-term funds available for investment.
Delivering the vote of thanks, Dr. Usman Jankara, NAICOM’s Deputy Commissioner for Insurance (Technical), praised SEC’s leadership for its proactive support.
He emphasised that continued collaboration between the two regulators would be critical to ensuring that the recapitalisation exercise delivers tangible benefits for policyholders, operators, and the Nigerian economy.
With the recapitalisation exercise now firmly backed by law and supported by inter-agency cooperation, stakeholders believe the Nigerian insurance industry is on the verge of a much-needed transformation.