The Securities and Exchange Commission (SEC) has unveiled a special desk to fast-track the recapitalisation process in Nigeria’s insurance industry, pledging to deliver approvals within 14 days of complete submissions.
The move was announced during the 19th Insurers’ Committee meeting in Lagos, where stakeholders discussed the implementation of the newly enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025 signed into law by President Bola Tinubu.
Speaking after the meeting, Ebelechukwu Nwachukwu, Chairperson of the Communication and Stakeholders Management Sub-Committee of the Insurers’ Committee, confirmed that the initiative is designed to eliminate bureaucratic bottlenecks and speed up market reforms.
According to her, SEC’s Director-General, Dr. Emomotimi Agama, assured insurers that the collaboration between the capital market regulator and the National Insurance Commission (NAICOM) marks the beginning of a stronger regulatory alliance.
“This is the first time NAICOM and SEC are working together in such a structured manner,” Nwachukwu said.
“The SEC has created a dedicated desk for insurance companies, and approvals for recapitalisation will now be issued within 14 days, provided applications are complete and submitted on time.”
In a major relief to operators, SEC has granted nine key concessions, including reduced regulatory fees for insurance companies undergoing recapitalisation.
Agama also highlighted the growing interest of investors in the sector, pointing to over ₦3 trillion recently raised for Nigerian banks, urging insurers to seize similar opportunities.
Industry watchers believe this could open the door for fresh capital inflows, mergers, and acquisitions, thereby repositioning Nigeria’s insurance industry for global competitiveness.
The Commissioner for Insurance, Olusegun Omosehin, reminded stakeholders that recapitalisation should not be treated as a mere fundraising exercise.
Instead, it should be seen as a chance to restructure balance sheets, strengthen corporate governance, and restore public confidence in the insurance system.
He further noted that NAICOM has released draft guidelines covering minimum capital requirements, InsurTech integration, and Takaful operations.
These drafts are currently open for industry feedback before final approval. In addition, plans are underway for a Policyholders’ Protection Fund, to be independently managed by an audit firm, aimed at safeguarding consumers’ interests.
Nwachukwu also disclosed that NAICOM has demanded detailed recapitalisation plans from insurers, not just in terms of raising funds but also regarding how those funds will be strategically utilised to expand operations and meet consumer needs.
She emphasized the regulator’s renewed focus on ethical practices and fairness, pointing to the insurance industry’s recent track record in paying major claims, which she described as evidence of its improving capacity.
“The industry has settled at least four major claims in recent years, a development that signals resilience and growing investor confidence,” she noted.
With over 40 million small and medium-sized enterprises (SMEs) underserved and health insurance still dominated by Health Maintenance Organisations (HMOs), analysts say the recapitalisation exercise presents a unique opportunity for insurers to expand their market penetration.
Nigeria’s insurance penetration rate remains below 1% of GDP, far behind African peers such as South Africa (over 13%).
The reforms are therefore expected to stimulate growth, encourage innovation through InsurTech, and improve consumer trust.
The creation of the recapitalisation desk is expected to bring several benefits, including:
Faster capital raising approvals – Cutting waiting times from months to just two weeks.
Reduced compliance costs – Thanks to fee reductions and streamlined procedures.
Investor confidence – Improved transparency and regulatory collaboration could attract both local and foreign investors.
Industry stability – Encouraging consolidation and stronger balance sheets.
Consumer trust – Greater emphasis on claims settlement and policyholder protection.
The insurance recapitalisation drive is widely viewed as a transformational step for Nigeria’s financial sector.
By aligning capital market resources with insurance growth plans, regulators hope to create a more resilient, innovative, and consumer-focused industry.
Nwachukwu summed it up:
“This is not just about raising capital. It is about transforming the insurance industry into a trusted pillar of Nigeria’s financial system.”
If effectively implemented, the SEC’s 14-day approval window and NAICOM’s new guidelines could mark a turning point for the Nigerian insurance sector, positioning it as a key driver of financial inclusion and economic stability in the years ahead.