The National Insurance Commission (NAICOM) has moved swiftly to kick-start the implementation of the Nigeria Insurance Industry Reform Act (NIIRA) 2025, following President Bola Ahmed Tinubu’s assent to the landmark legislation.
As part of the rollout, NAICOM has inaugurated a 2025 Recapitalisation Committee to drive the industry’s transition to the newly approved capital requirements — a key step in boosting the sector’s stability, transparency, and global competitiveness.
Committee to Oversee Recapitalisation Drive
According to NAICOM’s statement, the 11-member committee will be chaired by Oluwatoyin Charles, the Commission’s Director of Supervision.
Its primary responsibility is to ensure the smooth execution of the recapitalisation programme, which includes:
- Enforcing compliance with revised capital thresholds.
- Promoting transparency in sourcing and verifying capital inflows.
- Creating a Recapitalisation Roadmap for the Commission and the insurance industry.
- Developing guidelines and circulars for operators.
- Recommending the composition of Minimum Capital Requirements.
- Identifying incentives and concessions from other regulators.
The committee will provide monthly progress reports to NAICOM management and quarterly updates to its Governing Board and key stakeholders.
“Critical to Nigeria’s $1 Trillion Economy Vision” — Omosehin
Speaking at the inauguration in Abuja on August 12, 2025, the Commissioner for Insurance, Olusegun Ayo Omosehin, underscored the significance of recapitalisation in ensuring industry resilience and supporting Nigeria’s ambition to become a $1 trillion economy.
“This reform is not just about stronger balance sheets; it’s about giving the insurance industry the capacity to take on bigger risks, foster innovation, and inspire public trust,” Omosehin said.
He urged the committee to work with professionalism, diligence, and a shared commitment to the common good, pledging NAICOM’s full support for the process.
Industry Impact of NIIRA 2025
The NIIRA 2025 introduces significantly higher capital requirements for insurers and reinsurers, a move expected to:
- Strengthen risk-bearing capacity.
- Improve claims settlement timelines.
- Boost investor and consumer confidence.
- Position Nigeria’s insurance sector for global competitiveness.
NAICOM believes the reforms will not only stabilise the market but also unlock new growth opportunities for operators, aligning with broader government economic reforms, including bank recapitalisation, currency reforms, and tax restructuring.
Looking Ahead
With the Recapitalisation Committee now in place, NAICOM aims to ensure a transparent and inclusive implementation process that engages all industry stakeholders.
The coming months will be pivotal, as insurers prepare to meet the new requirements within the 12-month compliance window set by the Act.
