Anxiety is building across Nigeria’s insurance sector as eight insurers remain under regulatory review, days after the National Insurance Commission (NAICOM) concluded its recapitalisation programme and granted a 14-day grace period for operators that submitted their capital validation applications late. The uncertainty has left policyholders and industry stakeholders wondering what will happen to companies that fail to meet the new capital requirements before the extension expires.
NAICOM has confirmed that 43 insurance companies successfully met the new capital thresholds introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and have been issued fresh operating licences. However, the unresolved status of the remaining eight firms has created fresh concerns, particularly over the validity of existing policies and the ability of affected insurers to continue serving customers if they are ultimately forced to exit the market.
The concerns have been heightened by NAICOM’s recent revocation of the operating licence of Nigeria Reinsurance Corporation after the company failed to meet the statutory minimum capital requirement. The regulator appointed Senior Advocate of Nigeria Muiz Banire as receiver/provisional liquidator to oversee the company’s liquidation. For policyholders, the development has brought an uncomfortable question to the forefront: what happens to their motor, life, property, marine, health and business insurance policies if their insurer does not survive the recapitalisation exercise?
Unlike a bank account, where customers can often withdraw their funds quickly, insurance contracts can run for months or years and may involve claims, long-term protection and contractual obligations. This has made the uncertainty particularly sensitive for individuals and businesses that depend on insurance coverage for financial protection. While NAICOM says the recapitalisation is designed to create a stronger, more resilient and better-capitalised insurance industry, stakeholders are now watching closely to see whether the exercise will ultimately strengthen public confidence or deepen concerns about the security of existing policies.
The Nigerian Insurers Association (NIA) has appealed for calm, backing the eight companies undergoing final verification and praising NAICOM for what it described as a structured and transparent implementation of the new capital requirements. NIA Chairman Ebelechukwu Nwachukwu said the successful completion of the recapitalisation exercise would be a major gain for insurers, policyholders, investors and the wider economy. With the final verification window nearing its end, however, attention is now firmly on NAICOM and the fate of the eight outstanding insurers, as policyholders await clarity on the future of their coverage.
source: The guardian
