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More than 70 percent of insurance companies have completed NAICOM’s independent capital verification exercise, clearing one of the final regulatory hurdles ahead of the July 31 recapitalisation deadline.
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Most operators have also met the statutory deposit requirement with the Central Bank of Nigeria, as the insurance industry enters the final compliance stage of the recapitalisation programme.
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The exercise is expected to produce stronger insurers with higher underwriting capacity while accelerating mergers, acquisitions and strategic partnerships across Nigeria’s insurance industry.
July 28, (THEWILL) — More than 70 percent of insurance companies in Nigeria have completed the independent verification exercise required under the National Insurance Commission’s (NAICOM) recapitalisation programme, as operators race to meet the July 31 deadline set by the industry regulator.
The milestone signals that the insurance industry’s recapitalisation exercise has entered its final phase, with most operators clearing one of the most important compliance hurdles before NAICOM announces the outcome of the programme.
The update was disclosed by the Chairman of the Nigerian Insurers Association (NIA), Mrs Ebelechukwu Nwachukwu, during an interview with the News Agency of Nigeria (NAN) on Monday in Abuja.
According to Nwachukwu, the recapitalisation exercise has progressed steadily, with the majority of insurance companies already completing the independent verification of their capital positions.
“We have all paid for these processes, and my company has been verified. More than 70 percent of the companies have completed the verification exercise”, she said.
Operators meet key regulatory requirements
Nwachukwu explained that since December 2025, insurers have been submitting monthly reports to NAICOM detailing changes in their capital positions arising from underwriting activities, claims settlements and asset transactions.
She said the monthly reporting framework has enabled the regulator to monitor the financial position of operators throughout the recapitalisation process rather than waiting until the final deadline.
According to her, insurance companies were also required to lodge statutory deposits with the Central Bank of Nigeria (CBN) amounting to 10 percent of the revised minimum capital requirement, with most member companies already complying and submitting evidence to NAICOM.
She added that the independent verification exercise is being conducted by auditors from the Big Four accounting firms KPMG, PwC, Deloitte and EY while the commission is expected to announce the outcome of the recapitalisation programme after the July 31 deadline.
Nwachukwu noted that NAICOM has continued engaging insurers that are yet to meet the new capital thresholds to ensure an orderly transition that protects policyholders and preserves confidence in the insurance industry.
Stronger industry expected after deadline
The recapitalisation programme is expected to create a stronger and better-capitalised insurance industry with greater capacity to underwrite larger risks, settle claims promptly and compete more effectively within and outside Nigeria.
Industry observers also expect the exercise to accelerate mergers, acquisitions and strategic partnerships among operators unable to meet the revised capital requirements independently.
The compliance drive has already prompted several insurers to raise fresh capital ahead of the deadline. On Monday, Linkage Assurance Plc announced it had completed a ₦16.2 billion Rights Issue, enabling the company to meet NAICOM’s minimum capital requirement before the July 31 deadline.
Capital thresholds significantly raised
The recapitalisation exercise follows the enactment of the Nigerian Insurance Industry Reform Act, 2025, which significantly increased the minimum capital thresholds for insurance operators.
Under the new framework, non-life insurers are required to raise their minimum capital from ₦3 billion to ₦15 billion, life insurers from ₦2 billion to ₦10 billion, while reinsurers must increase their capital base from ₦10 billion to ₦35 billion.
The reform is regarded as one of the biggest regulatory overhauls of Nigeria’s insurance industry in recent years and is expected to improve the sector’s financial resilience, strengthen policyholder protection and enhance its contribution to economic growth.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
