The National Insurance Commission (NAICOM) has ruled out any extension of the ongoing recapitalisation deadline in the insurance industry.
NAICOM disclosed this at a seminar for insurance journalists held in Abuja.
The Commissioner for Insurance, Olusegun Omosehin, represented by the Deputy Commissioner for Insurance (Technical), Usman Jankara, said the recapitalisation timetable is fixed by law and cannot be altered.
“I would like to state unequivocally that the recapitalisation deadline will not be extended. The basic reason is this: it is the law. Once it is the law, nobody has the power to extend what the law has indicated as a deadline. To do that, you would need to return to the National Assembly, get the relevant section amended, and obtain the President’s assent. It is not a journey we are willing to embark on,” he said.
Jankara explained that the deadline stipulated in the Nigerian Insurance Industry Reform Act (NIRA) 2025 remains July 30, 2026, adding that serious operators should be able to comply.
“We believe that the deadline as clearly highlighted by NIRA is doable and reasonable, and that serious players within the insurance sector will be able to meet it within the stipulated time frame,” he said.
Jankara expressed confidence that the exercise would result in a stronger insurance industry.
“By the end of the deadline provided by NIRA, which is July 30, 2026, we will be presenting to Nigerians new insurance companies that have met the requirements, are stronger, better managed, and have the financial capacity to meet their obligations,” he added.
Jankara described the recapitalisation exercise as a structural reset for the market.
“The ongoing recapitalisation exercise in the Nigerian insurance industry is more than just a regulatory milestone. It is a bold transformation that will redefine the industry for global relevance.”
He further disclosed that NAICOM is introducing a risk-based capital framework and engaging the Big Four auditing firms for independent capital verification.
“This approach is designed to ensure confidence, fairness, and trust in the process, reinforcing the industry’s commitment to global best practices,” he said, noting that the reforms would support the Federal Government’s ambition of building a $1 trillion economy.
Jankara described the Nigerian Insurance Industry Reform Act 2025 as a modern framework that strengthens supervision, innovation, and consumer protection. He said the Act introduces clearer claims timelines, tougher penalties, and a new Insurance Policyholders’ Protection Fund to safeguard consumers in cases of insurer insolvency.
“NIRA is therefore not just a law; it is a blueprint for a stronger, more inclusive insurance industry,” he said.
Looking ahead, he said NAICOM would intensify consumer protection, strengthen supervision, expand data and analytical capabilities, deepen insurance penetration, and promote sustainability and innovation across the sector.
The Nigerian Insurance Industry Reform Act 2025 was signed into law in August 2025, replacing outdated insurance legislation and modernising the regulatory framework for the industry.
The Act significantly raises minimum capital requirements for insurers and introduces a risk-based capital regime to ensure companies hold capital commensurate with their risk exposure.