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| Photo credit — National Insurance Commission |
Nigeria’s insurance sector raised about ₦1.079 trillion in the recent recapitalisation. Charles Onoja of the Good Governance Assembly praises NAICOM CEO Olusegun Ayo Omosehin and calls for industry support for ongoing reforms.
Olusegun Ayo Omosehin, Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), has received public commendation for leadership during Nigeria’s recent insurance industry recapitalisation.
In a statement, Charles Onoja, Chairman of the Good Governance Assembly (GGA)’s Board of Leaders, said the organisation reviewed NAICOM’s recent activities and was impressed by progress under the current leadership. The group highlighted the successful conclusion of the recapitalisation exercise as evidence of the regulator’s focus on stronger institutions and a more stable environment for businesses and investors.
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Background: Why the Recapitalisation Happened
Nigeria’s insurance sector has long faced challenges with low capital bases, limited capacity to underwrite large risks, and relatively low penetration compared with peer economies. The Nigerian Insurance Industry Reform Act (NIIRA) 2025 raised minimum capital requirements substantially (generally ₦10 billion for life, ₦15 billion for non-life, higher for composite and reinsurance operators, subject to risk-based capital rules).
Operators had a transition period ending around July 2026. According to NAICOM updates reported across industry media, the exercise attracted approximately ₦1.079 trillion in capital. Fifty entities (48 insurance companies and two reinsurance companies) met the new requirements and were relicensed. A smaller number of licences were cancelled for non-compliance. Capital raised was subject to verification processes, including independent review by major audit firms in many cases, and temporary placement in escrow arrangements.
The goal, as stated by the regulator, was not simply higher numbers on balance sheets but improved financial resilience, better ability to meet claims and obligations, greater capacity to retain risks domestically, and stronger support for economic activity.
What the Good Governance Assembly Said
Onoja specifically praised Omosehin’s role:
“We commend the commissioner for insurance and chief executive officer of NAICOM, Mr Olusegun Ayo Omosehin, for the work he has done to reposition the insurance industry and strengthen regulatory standards. The scale of the recent recapitalisation exercise demonstrates that the commission has remained focused on its responsibility to build a stronger and more sustainable insurance sector.”
The GGA noted that the fresh capital represents an important development for a sector that mobilises long-term funds, protects businesses, and supports economic activity. Onoja said Omosehin deserved recognition for maintaining focus despite competing interests and concerns that arose during the process.
He added: “What is important at this point is to recognise the broader objective of the exercise. The insurance industry cannot remain weak if Nigeria is serious about attracting investment, protecting businesses and supporting economic growth. NAICOM under Mr Omosehin has taken steps towards ensuring that companies operating in the sector have the capacity to meet the demands of a modern economy.”
The group linked the reforms to wider federal economic objectives and urged stakeholders to support ongoing changes while engaging the regulator through proper channels when concerns arise. Disagreements over regulatory decisions, it said, should not overshadow broader progress or undermine confidence in the institutions.
Onoja stated that the GGA would continue monitoring the sector and supporting measures that promote transparency, accountability, and sustainable growth.
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Why This Matters for Policyholders, Businesses and the Economy
A better-capitalised insurance industry can:
• Settle legitimate claims more reliably and promptly
• Underwrite larger and more complex risks (infrastructure, energy, industrial projects) that previously leaned heavily on foreign capacity
• Attract more investor interest and long-term capital
• Support financial inclusion and protection for individuals and SMEs
• Contribute to overall economic stability by transferring and managing risk
Regulators and industry voices have stressed that capital alone is not enough. The next phase involves deploying the new capital effectively—through stronger governance, technology, product innovation, faster claims processes, and higher insurance penetration.
Call for Constructive Engagement
The GGA statement emphasises constructive engagement: stakeholders should raise concerns through appropriate channels rather than allowing disagreements to dominate the narrative. This approach aligns with the need for a stable regulatory environment while reforms continue, including the move toward more risk-based capital frameworks.
Conclusion
The recapitalisation marks a significant milestone for Nigerian insurance.
Commendations such as the one from the Good Governance Assembly underscore the view that focused regulatory action can strengthen institutions. Continued progress will depend on effective use of the new capital, sustained regulatory clarity, and collaborative efforts between NAICOM, operators, and other stakeholders.
For the latest official updates, readers should refer to NAICOM announcements and verified industry reports.
Samuel O. Sulaimon is the founder and Editor-in-Chief of Naijapiz. He covers News, Sports, Finance, Faiths, Education, Technology.
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