The National Insurance Commission (NAICOM) has ruled out any extension of the ongoing insurance industry recapitalisation programme, insisting that the deadline is fixed by law and cannot be altered administratively.
This position was stated on Tuesday in Abuja by the Deputy Commissioner for Insurance (Technical), Dr Usman Jankara, who represented the Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, at a seminar for insurance correspondents.
Responding to questions from journalists, Jankara said the commission lacked the authority to shift the timeline because the recapitalisation framework is embedded in the Nigerian Insurance Industry Reform Act (NIRA) 2025.
He explained that the Act clearly stipulates July 30, 2026 as the terminal date for compliance and that any attempt to modify it would require a return to the National Assembly for amendment and fresh presidential assent.
According to him, the commission considers such a process unnecessary, stressing that the timeline is realistic and achievable for serious operators in the sector.
Jankara expressed confidence that the exercise would ultimately strengthen the insurance market, noting that by the end of the deadline, only companies with sound governance structures and adequate financial capacity would remain in operation.
He said the commission expects to unveil a new generation of insurers that are better capitalised, well-managed and capable of meeting their obligations to policyholders.
Earlier in his address, Jankara apologised for the absence of the NAICOM boss and described the journalists’ forum as part of efforts to build stronger engagement with the media, which he said plays a critical role in shaping public understanding of insurance.
He outlined the commission’s recent reform agenda, which includes risk-based supervision targeting high-risk institutions, stricter market conduct rules, faster claims settlement processes and a zero-tolerance stance on unresolved complaints.
He also disclosed that NAICOM is expanding insurance inclusion through microinsurance, takaful, insurtech and products tailored to micro, small and medium-scale enterprises, while encouraging innovation via a technology directorate, an innovation hub and a regulatory sandbox.
The deputy commissioner added that the commission is working with the Nigeria Police Force to enforce compulsory third-party motor insurance, a move he said is already helping to change negative perceptions of insurance among Nigerians.
On recapitalisation, he described the exercise as a structural overhaul designed to reposition the industry for global relevance. He said NAICOM is introducing a risk-based capital regime and engaging leading audit firms to independently verify insurers’ capital levels in line with international best practices.
Jankara further highlighted that the Nigerian Insurance Industry Reform Act 2025, signed into law in August, has replaced outdated legislation and introduced a modern regulatory framework that strengthens supervision, consumer protection and market discipline.
Among its innovations are clearer timelines for claims settlement, stiffer penalties for defaulting firms and the creation of an Insurance Policyholders’ Protection Fund to safeguard consumers in the event of company failures.
