Stakeholders in Nigeria’s insurance sector have described the completion of the 12-month recapitalisation exercise as a major milestone in efforts to build a stronger, more resilient and adequately capitalised industry.
The stakeholders, under the aegis of the Parliamentary Support Network (PSN), also expressed support for the Commissioner for Insurance, Mr Olusegun Ayo Omosehin, over the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
In a statement signed by Amb. Muhammad Abdulrazaq and Comr. Adams Umoren, the group said the insurance industry was undergoing significant changes following the enactment and implementation of the new law.
According to them, NIIRA 2025, signed into law by President Bola Tinubu, has moved beyond legislation into implementation through the recapitalisation exercise, strengthened policyholder protection and renewed enforcement of compulsory insurance.
The stakeholders said the Act repealed and consolidated previous insurance laws while introducing enhanced provisions on capital requirements, risk-based supervision, corporate governance, consumer protection and regulatory enforcement.
“NIIRA provides a unified legal framework while giving the regulator greater capacity to respond to emerging risks. It also provides for stronger protection of policyholders, including the establishment of the Insurance Policyholders Protection Fund,” the statement said.
They cited the National Insurance Commission’s (NAICOM) announcement in August 2026 that the 12-month recapitalisation exercise had been completed as evidence of progress in implementing the new regulatory framework.
They also highlighted the commencement of the Insurance Policyholders Protection Fund and the October 2025 inauguration of a joint committee between NAICOM and the Federal Road Safety Corps (FRSC) to strengthen enforcement of compulsory third-party motor insurance.
“Since the commencement of NIIRA, there have been visible steps towards putting its provisions into effect. NAICOM announced in August 2026 that the 12-month exercise had been successfully completed, a major step towards building a stronger, more resilient and adequately capitalised insurance industry,” the stakeholders said.
“These developments indicate that NIIRA is moving from legislation to implementation,” they added.However, the group acknowledged that the new capital requirements had placed significant demands on insurance operators, noting that disagreements over fees, compliance requirements and regulatory interpretation were bound to arise.
The stakeholders maintained that while insurance companies must comply with regulatory requirements, regulators should also remain subject to scrutiny and institutional accountability.
They expressed concern over the cases of NICON Insurance Plc and Nigeria Reinsurance Corporation, which are under liquidation after reportedly failing to meet minimum capital requirements.
They also referred to a petition submitted to the Economic and Financial Crimes Commission (EFCC) alleging irregularities in the recapitalisation process.NAICOM has rejected the allegations, maintaining that providing information requested by the EFCC should not be interpreted as an indictment of the commission.
Reacting to the controversy, the stakeholders said disagreements within the sector should be addressed through evidence, due process and established institutional mechanisms rather than public accusations.“No company should be above regulation.
At the same time, no regulator should be above scrutiny.The appropriate response to disagreement is evidence, due process and institutional accountability,” they said.
The group added that allegations should be subjected to proper investigation and due process, while stressing that petitions to law-enforcement agencies should not be used to frustrate the implementation of legislation duly enacted by the National Assembly and assented to by the President.
The stakeholders urged all insurance operators to comply with the provisions of NIIRA 2025 and called on NAICOM to continue enforcing the law transparently and without discrimination.
They also urged the EFCC to independently examine any properly lodged allegations concerning the recapitalisation exercise.
The group stressed that policyholder protection must remain at the centre of the insurance industry’s reforms, arguing that the sector should not return to practices that the new law was introduced to address.
