By David Akinmola
Fresh indications have emerged that the National Insurance Commission (NAICOM) may extend the deadline for the ongoing recapitalization verification exercise following the expiration of the May 31, 2026 deadline and the large volume of applications awaiting regulatory review.
Industry source close to the commission told The Guardian that more than 25 insurance operators have submitted applications for capital verification out of the industry 58 licensed insurers prompting speculation that additional time may be granted to enable NAICOM and four auditors engaged for exercise to conclude its assessment process and allow affected firms to complete outstanding requirements.
The recaitalisation verification exercise forms part of the implementation framework of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which seeks to strengthen operators’ capital base, enhance underwriting capacity and position the industry for greater competitiveness.
The development comes amid heightened regulatory efforts to deepen market stability and ensure that operators meet the new capital requirement prescribed under the reform law.
The issue featured prominently at the 21st meeting of the insurers’ committee heldin Lagos, where regulators and industry stakeholders reviewed the progress of the recapitalization exercise, compulsory insurance enforcement, consumer peotection initiatives and strategies to position the industry for opportunities under the African Continental Free Trade Areas (AfCFTA).
Although NAICOM has yet to make an official announcement on a possible extension, industry stakeholders said the voluw of submissions and ongoing verification processes may necessitate additional time to ensure a transparent and orderly implementation of the exercise.
Speaking during a briefing after the meeting, Chairman of the Communications and Stakeholders Engagement Sub-Committee of the Insurers’ Committee, Ebelechukwu Nwachukwu, said the Commissioner for Insurance, Segun Omosehin, reminded operators that only a few weeks remain before the verification deadline.
According to her auditors appointed by NAICOM are currently conducting verification exercises across insurance companies, while firms are expected to formally invite the commission for verification before May 31.
“The commission stressed the importance of trating the recapitalization exercise with urgency, noting that compliance remains a key requirement for strengthening the industry,” Nwachukwu said.
The committee also reviewed enforcement efforts surrounding compulsory third-party motor insurance, particularly NAICOM’s collaboration with the Nigerian Police to curb the proliferation of fake insurance policies.
Nwachukwu revealed that the commissioner expressed concern over the activities of illegal operators in the market and commended the Association of Registered Insurance Agents of Nigeria for supporting efforts to eliminate fake insurance practices.
The meeting further examined NAICOM’s travel insurance guidelines, which are aimed at ensuring effective regulation and improved protection for Nigerian Purchasing travel insurance policies.
On consumer protection, the committee reviewed the inauguration of the insurance Policy Protection Fund committee expected to safeguard policyholders and ensure that valid claims reman protected.
The commissioner also revisited compliance with the National Identification Number (NIN) directive, noting that operators had agreed not to honour claims linked to policies without updated NIN records pending further regulatory directives.
In addition, the committee received presentations from the National Credit Guarantee Company and Credit Bureau on opportunities for collaboration with insurers to strengthen underwriting standards and improve financial data sharing.
Nwachukwu said insurers were encouraged to engage more actively with credit bureaus to support underwriting decisions, monitor premium payments and identify fraudulent claims.
The meeting also received updates on the planned lauch of a Nigerian experience mortality table by June 2026, alongside reports on the African Continental Free Trade Area (AfCFTA) and trade agreements involving countries including the United Kingdom, China, Turkey and the United Arab Emirates.
Commenting on the meeting, Head of Corporate Affairs at NAICOM, Abba Hall, said the commission remains committed to reforms that promote market stability, transparency and stronger consumer confidence in the insurance sector.
He noted that the recapitalization exercise and other regulatory initiatives are expected to position the industry for sustaninable growth and increased participation in regional trade opportunities.
Industry stakeholders said the reforms reflect broader efforts to improve the competitiveness of the Nigerian Insurance sector and strengthen public confidence in insurance services.
