Insurance Recapitalisation: Deadline Stands, No Extension, NAICOM Declares

The National Insurance Commission (NAICOM) has officially ruled out any possibility of extending the ongoing insurance recapitalisation exercise, affirming that the 31 July deadline remains immutable.

Speaking at a media briefing in Lagos, the Commissioner for Insurance, Olusegun Omosehin, expressed concern over what he described as a lack of urgency among many operators, despite the approaching deadline.

Mr Omosehin clarified that the timeline is anchored in law, noting that the Commission lacks the authority to alter a date established by an Act of the National Assembly. He stated that any change to the schedule would require a formal legislative amendment a path the regulator is not prepared to pursue.

He cautioned against last-minute manoeuvres, warning that the Commission would not entertain pleas for extensions or be drawn into a rushed conclusion.

While acknowledging that about 20 insurance firms have commenced capital verification with major auditing firms, the Commissioner observed that the overall sense of urgency across the industry remains misaligned with statutory requirements.

He reiterated that the exercise is aimed at building a stronger, more resilient sector capable of supporting Nigeria’s economic aspirations, emphasising that capital alone is not the objective. According to him, the focus is on strengthening underwriting capacity to handle large-scale risks and enhance policyholder protection.

Mr Omosehin urged operators that may struggle to meet the new requirements to consider mergers or acquisitions without delay. However, he warned against hastily arranged “emergency marriages,” noting that such approaches often result in post-merger integration challenges and unresolved liabilities.

He confirmed that the Commission is currently reviewing all operating firms and will soon make its findings public. To ensure the integrity of the process, he reminded industry players that all funds raised must be lodged in designated escrow accounts, reaffirming that the 31 July deadline remains sacrosanct.