James Emejo in Abuja
The National Insurance Commission (NAICOM), yesterday said it has commenced the issuance of new licence certificates to insurance companies that successfully met the new minimum capital requirements, a move aimed at strengthening the sector’s financial resilience and global competitiveness.
The presentation of the new licences at the commission’s headquarters in Abuja marked the formal commencement of a phased transition to a higher capital regime designed to improve insurers’ financial capacity, solvency and claims-paying ability.
Speaking at the ceremony, Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, described the exercise as a major milestone in the industry’s recapitalisation programme, adding that it ushers in a new regulatory era anchored on stronger capitalisation, sound corporate governance, product innovation and sustainable growth.
In a statement, he congratulated the successful companies, noting that the completion of the recapitalisation exercise represents more than compliance with regulatory requirements.
According to him, the exercise lays the foundation for building a stronger, more resilient and globally competitive insurance industry capable of supporting Nigeria’s economic aspirations.
The commissioner urged the newly recapitalised firms to deploy their enhanced capital base towards developing innovative insurance products, improving operational efficiency and expanding insurance penetration across the country.
He stressed that the commission expects higher standards of professionalism, innovation and improved returns on investment from operators, adding that the industry is now well-positioned for the next phase of regulatory reforms.
He said, “The commission has high expectations for professionalism, innovation, operational efficiency and improved returns on investment.”
The NAICOM boss added that stronger balance sheets should translate into better value for policyholders and investors alike.
Omosehin also disclosed that NAICOM’s next major regulatory initiative would be the implementation of the Risk-Based Capital (RBC) framework, under which insurers’ capital requirements will be aligned with the level of risks embedded in their respective business portfolios.
He explained that the framework is expected to strengthen risk management practices across the industry while ensuring that companies maintain adequate capital buffers relative to their underwriting exposures.
The commissioner reaffirmed NAICOM’s commitment to creating an enabling regulatory environment by removing unnecessary impediments where appropriate while maintaining effective oversight and enforcing standards that protect policyholders and boost public confidence in the insurance market.
A total of 43 insurance companies that successfully met the commission’s new minimum capital requirements are expected to receive the new licence certificates.
NAICOM said the issuance of the certificates represents the beginning of a structured transition to enhanced capital standards aimed at improving the financial strength, stability and long-term sustainability of Nigeria’s insurance industry.
The development comes days after the commission confirmed that 43 insurance companies had complied with the minimum capital requirements under the ongoing recapitalisation programme, reinforcing regulatory efforts to position the sector for greater resilience, increased investment capacity and improved service delivery.