Ebere Nwoji posits that the successful conclusion of the recapitalisation exercise in the insurance sector, after years of failed attempts, is a plus for the National Insurance Commission
The National Insurance Commission (NAICOM), on Friday August 13th 2026, concluded the 12 months long recapitalisation exercise in insurance industry, which it commenced in July 2025.
The commission concluded the recapitalisation amidst opposition and allegations of unlawful demand of shareholders 1 per cent fund, illegal transfer of N50 billion as well as payment of N180 million recapitalisation fee to the commission by the owner of NICON Insurance Limited and Nigeria Reinsurance Corporation.
The allegations, which would have again truncated the success of the recapitalisation exercise were reminiscent of various allegations in the past years that had always annulled several initiatives by different commissioners for insurance.
But thanks to the NIIRA 2025, which instituted this edition of the recapitalisation strongly backed by law, empowerment of the regulator and the determination of the present commissioner for Insurance, Mr Olusegun Ayo Omosehin to see the success of the exercise at all cost. Otherwise, the NICON and Nigeria Re owner’s opposition and his open letter to the president published in front pages of daily Newspapers would have again foiled the success of the exercise.
Successful firms Get New licenses
Following the compliance of many operators to the recapitalisation requirements, NAICOM has issued new operating licenses to the successful companies thus reducing the number of insurance and reinsurance companies in the country from 60 to 50, comprising of 48 primary insurance companies and two reinsurance firms.
The following are names of licensed insurance companies in the country which met the recapitalisation requirements: Zenith General Insurance Company Limited, Leadway Assurance Company Limited, Custodian Life Assurance Limited, Custodian and Allied Insurance Limited, NEM Insurance Plc, AIICO Insurance Plc, CHI Life Assurance Limited, Heirs General Insurance Limited, Fin Insurance Company Limited,
Cornerstone Insurance Plc, Mutual Benefits Assurance Plc, Heirs Life Assurance Limited, Tangerine General Insurance Limited, Capital Express Indemnity Insurance Limited, Continental Reinsurance Plc, FBS Reinsurance Limited, Sanlam-Allianz General Insurance Nigeria Limited.
Others are: Prudential Zenith Life Insurance Limited, Consolidated Hallmark Insurance Limited, Stanbic IBTC Insurance Limited, Sanlam-Allianz Life Insurance Nigeria Limited, Sterling Assurance Nigeria Limited, AXA Mansard Insurance Plc, Unitrust Insurance Co. Limited, Capital Express Life Assurance Limited, Mutual Benefits Life Assurance Limited, NSIA Insurance Limited, Rex Insurance Limited, LASACO Assurance Plc, Linkage Assurance Plc, Anchor Insurance Company Limited
Enterprise Life Assurance Company (Nigeria) Limited, Sunu Assurances Nigeria Plc, KBL Insurance Limited, International Energy Insurance Plc and Veritas Kapital Assurance Plc.
NPF Insurance Company Limited, Fortis Global Insurance Plc, Coronation Life Assurance Limited, Industrial and General Insurance Plc, Coronation Insurance Plc, Prestige Assurance Plc and Great Nigeria Insurance Plc, emPLE General Insurance Limited, emPLE Life Assurance Limited, Sovereign Trust Insurance plc, Tangerine Life Insurance Limited, Alliance &General Insurance Plc, Guinea Insurance Plc, and Regency Alliance Insurance Plc, also made it.
Pruning Operating firms
The recapitalisation exercise followed the enactment of NIIRA 2025, which introduced higher minimum capital requirements for insurance and reinsurance companies.
NIIRA directed that Life insurance firms should upgrade their capital from N2 billion to N10 billion, General Business underwriters from N3 billion to N15 billion, composite firms from N5 billion to N25 billion while Reinsurers upgrade from N10 billion to N35 billion.
But Nigerian Agricultural Insurance Corporation (NAIC) the only insurance company, which specialised and pioneered Agric insurance underwriting in Nigeria was not included in the list of successful companies despite that it is owned by Federal Government.
Also, African Alliance Insurance Plc did not make the list. In June 2026, NAICOM had transferred operational control of the company to a newly constituted board nominated by its shareholders following the conclusion of a regulatory intervention that commenced in October 2024.
The non-inclusion of Universal Insurance into the list of successful companies was what sent shocks to the spine of Nigerian public because going by its activities the company was doing very well.
But THISDAY gathered that the company suffered last minute disappointment by another company it almost concluded merger plans with and could not salvage the situation before the dawn of the deadline.
Non-compliant firms
NAICOM therefore appointed liquidators for non-compliant companies. It withdrew the operating licence of Nigeria Reinsurance Corporation after the company failed to meet the statutory minimum capital requirement, paving the way for the commencement of its liquidation, but recently its owners instituted litigation against the regulator insisting that the companies recapitalised their operations. This is despite the fact that the owner knew that for seven consecutive years, the two companies neither filed their returns to the regulator nor held annual general meeting as stipulated by the law.
In an open letter to the President Bola Tinubu, the owner of the two firms Jimo Ibrahim insisted that they met the recapitalisation requirements hence no need to appoint liquidators. He also accused the regulator of imposing illegal levies on operating firms. This informed an order of stay-action to the commissioner for insurance on the liquidation of the two firms, by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
Stakeholders’ reactions
But in a swift reaction to this, prominent stakeholders in the industry including a former commissioner for insurance and former Managing Director of both NICON Insurance Limited and Nigeria Reinsurance Corporation, Mohammed Kari, wrote an open letter to the Oyedele, advising the federal government to resist the urge to grant special carve-outs or act as an informal court of appeal for failing operators, insisting that NAICOM was the state’s empowered regulator; therefore, must be permitted to apply the law equally to every company whether privately owned, historically created or under asset management control. According to him, “Honourable Minister, Nigeria’s insurance sector has enormous untapped potential, but it can only realise that potential if the government allows a level playing field to flourish”
In continuation he said, “I trust that it is through this uncompromising stance that the Federal Ministry of Finance, which bears the ultimate responsibility for managing Nigeria’s economy, will give the right impression to investors, insurers, and reinsurers the world over. By upholding regulatory integrity and refusing to shield non-compliant operators, your ministry will demonstrate that Nigeria is serious about financial discipline, thereby building lasting global confidence in the Nigerian insurance sector.”
Kari also observed that recapitalisation in other arms of the finance services sector of the economy including banks and pension sectors always starts and ends smoothly without opposition.
“But recapitalisation exercises initiated in insurance sector ended in inconclusiveness as operators would always find one allegation or the other against the regulator to foil the exercise,” he said.
Kari was speaking from experience as his regime was a victim of the recapitalisation opposition when in July 2018, he introduced the controversial Tier- based Solvency Capital Increase, which was cancelled in November of same year due to industry opposition and legal tussle from opposition side.
Failed Recapitalisation Attempts
It would be recalled that before the just concluded recapitalisation, the insurance sector experienced different cycles of failed recapitalisation attempts.
The late Oladipo Bailey was the insurance commissioner in 1997 when the first attempted to raise the minimum operating capital of the industry from N20 million to N500 million. This ended in multiple court cases by opposing parties.
Ten years after precisely in 2007, the then commissioner for insurance Mr Fola Daniel, successfully raised the capital base of the operators to N2 billion minimum for life operators, N3 billion for nonlife operators, N5 billion for composite firms and N10 billion for reinsurers. This was the last conclusive recapitalisation exercise carried out in the industry. Between 2018 and 2019 Kari introduced the Risk based capital increase but he did not succeed. Between 2020 and 2021, the immediate past commissioner, Sunday Thomas introduced the minimum share capital model but this again was stalled by court injunctions.
For each phase, the opposition parties always pose reasons for their court action and often have their way thereby leaving the regulator helpless.
But the signing into law of the NIIRA Act will break the failure cycle if the finance minister refuse to listen to the opposition parties and stand with NAICOM.
According to the analysts, the reason the minister should close his ears to petitioners is to avoid a repeat of what happened in the past.