The National Insurance Commission (NAICOM) and the Nigerian Insurers Association (NIA) have reaffirmed their commitment to closer collaboration on financial reporting, audit quality, and regulatory compliance, as Nigeria’s insurance industry navigates recapitalisation and major accounting reforms.
This commitment was underscored at a one-day stakeholders’ engagement held on Wednesday, January 28, 2026, at the NEM Insurance Auditorium, which brought together finance directors, auditors, actuaries, compliance officers, external auditors, and industry consultants across the insurance value chain.
Focus on Timely, Accurate Financial Statements Amid Recapitalisation
In his opening remarks, Dr. Emmanuel Otitolaiye, Chairman of the NIA Accounting Technical Committee, stressed that sustained collaboration between insurers and regulators is essential to prevent regulatory infractions and reduce delays in approving audited financial statements.
According to him, the session was designed to share practical learning points from NAICOM’s review of 2024 financial statements, enabling operators to proactively address recurring issues ahead of the 2025 accounts submission.
“With recapitalisation underway, this is not a year where financial statements can afford to be returned repeatedly for corrections. Time is limited for both the regulator and the industry,” Otitolaiye noted, adding that the programme reflects NAICOM’s preference for guidance and capacity-building rather than sanctions.
Also speaking, Mrs. Abimbola Odukale, Director-General of the NIA, said the annual engagement has significantly strengthened collaboration between NAICOM and member companies, expressing optimism that the partnership would further advance industry stability and professionalism.
NAICOM Reaffirms Support as NIIRA 2025 and IFRS 17 Take Centre Stage
Delivering NAICOM’s remarks, Mrs. Oluwatoyin Charles, Director of Supervision, described the session as particularly timely given the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and the post-adoption phase of IFRS 17 – Insurance Contracts.
She explained that the recapitalisation exercise introduced under NIIRA 2025 represents a defining milestone aimed at strengthening solvency, improving risk-bearing capacity, and restoring public confidence in the insurance sector.
“Our level of readiness reflects a collective determination to go beyond regulatory compliance and embrace recapitalisation as an opportunity for modernization, stronger governance, and operational resilience,” she said.
On IFRS 17, Mrs. Charles urged insurers to prioritise accuracy, transparency, and full disclosure, describing financial integrity as a promise that builds trust and safeguards the industry’s future.
Regulatory Guidance on Common Reporting Gaps and Capital Disclosure
A detailed technical session was delivered by Mr. Gabriel Oloba, Senior Financial Analyst in NAICOM’s Office of the Deputy Commissioner (Technical), who highlighted recurring errors and disclosure gaps identified in insurers’ financial statements.
He pointed to weaknesses in reconciliations and notes to accounts as key factors delaying regulatory approvals, while offering practical recommendations to improve reporting quality, consistency, and compliance.
Mr. Oloba also urged insurers to fully disclose information relating to the new capital regime, in line with requirements under Minimum Capital Requirement (MCR), Risk-Based Capital (RBC), Capital Adequacy, and the Solvency Control and Intervention Framework (SCIF).
Recapitalisation Progress Reporting Under the Spotlight
Further insights on recapitalisation were provided by Mr. Cyprian Amadi, Deputy Director of Supervision at NAICOM, who outlined expectations around compliance timelines, capital verification, computation methods, and progress reporting.
He expressed concern over gaps observed in some operators’ submissions, including the absence of detailed recapitalisation plans, solvency calculation errors, and unclear capital targets—particularly among composite insurers.
Mr. Amadi stressed that accurate and timely monthly progress reports are critical to the success of the recapitalisation exercise, describing the reform as a transformational initiative designed to reposition Nigeria’s insurance industry for sustainable growth and enhanced global competitiveness.
Conclusion
The joint NAICOM–NIA engagement highlights a shared resolve to raise financial reporting standards, strengthen compliance culture, and ensure a smooth recapitalisation process. As regulatory expectations evolve under NIIRA 2025 and IFRS 17, insurers that embrace transparency, early engagement, and disciplined execution are likely to emerge stronger in Nigeria’s transforming insurance landscape.
