Insurance stakeholders back NAICOM over NIIRA 2025 implementation
Insurance Stakeholders Hail Completion of Recapitalization Exercise in Nigeria
Stakeholders in Nigeria’s insurance sector have hailed the completion of a 12-month recapitalization process, viewing it as a significant milestone in the efforts to strengthen and stabilize the industry.
Representatives of the industry, associated with the Parliamentary Support Network (PSN), expressed support for Insurance Commissioner Olusegun Ayo Omosehin and emphasized the positive transformation occurring under the Nigerian Insurance Industry Reform Act (NIIRA) 2025. They noted that the sector is entering a phase of significant reform due to the new law.
In a statement issued by Amb. Muhammad Abdulrazaq and Comr. Adams Umoren, the stakeholders highlighted that NIIRA 2025, enacted by President Bola Tinubu, has transitioned from legislation to implementation. This was achieved through recapitalization efforts, enhanced protection for policyholders, and increased enforcement of mandatory insurance requirements.
The statement noted that NIIRA 2025 consolidates previous insurance laws while introducing more robust provisions regarding capital requirements, risk-based supervision, corporate governance, consumer protection, and regulatory compliance.
“NIIRA provides a unified legal framework while enabling the regulator to effectively respond to emerging risks. It also establishes stronger protections for policyholders, including the creation of the Insurance Policyholders Protection Fund,” the statement read.
The National Insurance Commission (NAICOM) announced in August 2026 that the recapitalization exercise had been completed, marking a pivotal point in fortifying the industry.
The stakeholders also pointed to the commencement of the Insurance Policyholders Protection Fund and the planned October 2025 establishment of a joint committee with the Federal Road Safety Corps to enforce compulsory third-party motor insurance.
Since the implementation of NIIRA, stakeholders observe visible progress in enforcing its provisions. They acknowledged that while the new capital requirements impose significant challenges for operators, disagreements related to fees, compliance, and interpretations are expected.
They asserted that no company should be above regulation, nor should any regulator evade scrutiny. Disputes should be resolved through due process and institutional accountability.
Concerns were raised regarding NICON Insurance Plc and Nigeria Reinsurance Corporation, both facing liquidation due to failure to meet minimum capital requirements. The stakeholders mentioned a petition filed with the Economic and Financial Crimes Commission (EFCC), alleging irregularities in the recapitalization process, although NAICOM has refuted these claims, stating that collaboration with the EFCC does not constitute an indictment.
In response, stakeholders emphasized the importance of proper investigation and due process, cautioning against public trials. They advocated for compliance with NIIRA 2025 across the insurance sector and called for transparency from NAICOM during enforcement. They also urged the EFCC to objectively assess any legitimate allegations.
The stakeholders vowed to keep policyholder protection at the forefront and underscored that the industry must not revert to practices that the Act sought to eliminate.
