The National Insurance Commission (NAICOM) has restated that there will be no extension of the recapitalisation exercise deadline for insurance companies across the country, insisting that they must be completed by the legally stipulated deadline of July 30, 2026 as stipulated in the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Speaking at a seminar for insurance journalists in Abuja, Dr. Usman Jankara, Deputy Commissioner for Insurance (Technical), who represented NAICOM’s Commissioner for Insurance (CfI) Mr. Olusegun Omosehin, warned that the timeline is fixed by law and cannot be extended.
He emphasised that altering the deadline would require a full legislative process, including amendments by the National Assembly and presidential assent, a process that is not in focus of the commission.
“I would like to state unequivocally that the recapitalisation deadline will not be extended. The basic reason is this: it is the law,” Jankara said, adding that serious players in the sector should be able to comply within the timeframe.
The recapitalisation exercise is anchored ion NIIRA 2025, and aims to strengthen the industry by ensuring insurance companies have sufficient capital to meet obligations to policyholders.
Jankara disclosed that NAICOM has engaged independent verification through the Big Four auditing firms and introduced a risk-based capital framework to enhance transparency and confidence and described the recapitalisation as a “fundamental reset” for the Nigerian insurance industry, adding that it will create stronger, better-managed companies capable of competing globally.
Highlighting the role of NAICOM in promoting reforms that balance prudential oversight with innovation he enumerated microinsurance, takaful, insurtech solutions, and MSME-focused products, as well as measures to enforce compulsory third-party motor insurance as steps in the right direction.
“By the end of the deadline provided by NIIRA, we’ll be coming out to Nigerians with insurance companies that are stronger, more well-managed, and capable of meeting their obligations,” Jankara said.
NAICOM’s engagement with the media, he noted, is part of a broader strategy to improve public perception of insurance, deepen penetration, and foster trust in the sector; an exercise he said will continue until targets of inclusion and penetration are met.
The Nigerian Insurance Industry Reform Act NIIRA 2025, signed into law in August 2025 by President Bola Tinubu, replaced outdated legislation, significantly raised minimum capital requirements, and introduced a modern risk-based capital regime aligned with the risk exposure of insurers.
Going into 2026, NAICOM says it will be employing a multi-pronged communication approach that will speak to the public in the language they understand and industry players who fail regulatory supervision would face penalties.
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