- Says non-compliance may attract regulatory action
BY COBHAM NSA – The National Insurance Commission (NAICOM) says there will be no extension in the legally stipulated deadline of July 30, 2026 for insurance companies across Nigeria to recapitalise.
Warning that non-compliance would attract regulatory action, such as revocation of licenses, liquidation, or forced mergers, the Commission said, being fixed by the Nigerian Insurance Industry Reform Act (NIIRA) 2025, the timeline remains Sacrosanct and there will be extension to the 12-month compliance window.
Deputy Commissioner for Insurance (Technical), Dr. Usman Jankara, delivered the ‘no deadline extension’ warning when he represented NAICOM’s Commissioner for Insurance, Mr. Olusegun Omosehin, at a seminar for insurance journalists in Abuja.
Jankara said shifting the deadline would involve full legislative process, including amendments by the National Assembly (NASS) and presidential assent, insisting that the Commission does not contemplate going through such cumbersome process.
According to him, “I would like to state unequivocally that the recapitalisation deadline will not be extended. The basic reason is this: it is the law”, adding that serious players in the sector should be able to comply and meet the stipulated timeframe for the recapitalisation exercise.
Amplifying the Commission’s insistence on the deadline, Jankara said: “Once it’s the law, nobody has the power to extend what the law had indicated as a deadline. If you need to do that, you would need to go back to the National Assembly, get that section amended, and get Mr President’s assent. It is not a journey we’re willing to embark on
“We believe that the deadline as clearly highlighted by NIRA is doable, it is reasonable, and it is something serious players within the insurance sector will be able to meet within that time frame.”
With the recapitalisation anchored on NIRA 2025 which focuses on revitalising the industry and boosting insurance companies’ capital base to meet policyholders’ obligations, the NAICOM’s Deputy Commissioner said, “By the end of the deadline provided by NIRA, that is July 30, 2026, we’ll be coming out to Nigerians with new insurance companies that have met the requirement, that are stronger, that are more well-managed, and that have the financial muscles to meet their obligations to Nigeria.”
He disclosed that the Commission is embarking on independent verification through the Big Four auditing firms while also introducing a risk-based capital framework to enhance transparency and confidence in the exercise.
Also describing the recapitalisation as a “fundamental reset” for the insurance industry, Jankara said that aside from creating stronger, and better-managed companies with the capacity to compete on the global stage, even as he highlighted NAICOM’s role in promoting reforms that balance prudential oversight with innovation.
He listed the coverage areas as microinsurance, takaful, insurtech solutions, and MSME-focused products, as well as measures to enforce compulsory third-party motor insurance in collaboration with the Nigeria Police Force (NPF)
Speaking on the Commission’s engagement with the media, Jankara said robust partnership is considered part of its comprehensive plan to improve public perception of insurance, deepen penetration, bolster confidence and foster trust in the sector.
NAICOM reaffirmed its commitment to consumer protection, innovation, and sustainable growth as it oversees the ongoing transformation of the insurance sector.
With the NIIRA 2025 loading, NAICOM said its commitment to consumer protection, innovation, and sustainable growth would remain topnotch in overseeing the ongoing transformation within the nation’s insurance sector.
By the new Act, signed on 5th August 2025, the capital base for all categories of insurance operators has shored up significantly with Life Insurance increased from ₦2 billion to ₦10 billion; Non-Life Insurance moved up from ₦3 billion to ₦15 billion; Composite Insurance taken from ₦5 billion to ₦25 billion; and Reinsurance hiked from ₦10 billion to ₦35 billion.
