Abdulwahab Isa 
The 30th July 2026 deadline for recapitalisation of insurance firms in Nigeria is sacrosanct, with no extension planned, the National Insurance Commission (NAICOM) has ruled.
The Commissioner of Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, reiterated the regulator’s position during an interactive session with journalists in Abuja, citing compliance with the law as the reason. He was represented by the Deputy Commissioner (Technical), Dr. Usman J. Jankara.
“Once it’s in the law, nobody has the power to extend what the law has specified at the deadline. To do so, you would need to go back to the National Assembly, amend the section, and get presidential assent. That is not a journey we are willing to embark on,” he said.
He added, “We believe the deadline, as highlighted by the Nigerian Insurance Industry Reform Act (NIIRA), is doable and reasonable. Serious players in the insurance sector will be able to meet it. We are putting in place the requisite framework, and by 30th July 2026, we expect to present Nigerians with stronger, well-managed insurance companies with the financial capacity to meet obligations and expand their reach.”
Under the new insurance law, the minimum capital requirements are: N15 billion for non-life insurers, N10 billion for life insurers, and N35 billion for reinsurance companies.
Omosehin explained, “The minimum capital requirement is the floor for operating in the insurance space. Every life insurer, non-life insurer, or reinsurer must meet this requirement. That is the essence of the recapitalisation exercise.”
On risk-based capital, he said, “This capital is based on the nature of the risks an entity faces. For instance, while the baseline minimum capital may be N25 billion, if calculations of risk exposure show N40 billion is needed, the framework requires that capital. Risk-based capital sits on top of the minimum capital requirement.”
Addressing the Insurance Policy Holders Protection Fund (IPHPF), which safeguards policyholders in the event of a company’s insolvency, he said: “The fund exists to settle obligations to the public if an insurance company becomes insolvent. Most complaints from the public stem from the negative perception caused by insolvent companies. The fund addresses this perception.”
He added, “The IPHPF is self-funded, with a governance committee and a sustainability mechanism. Claims are recouped through liquidation proceeds or repayments. Unlike NDIC for banks, the IPHPF can intervene even when a company is still operational but facing difficulties, acting like both AMCON and NDIC.”
