The Nigerian Council of Registered Insurance Brokers (NCRIB) has expressed confidence that more than 60 per cent of insurance companies in the country will successfully navigate the ongoing recapitalisation exercise. NCRIB President, Babatunde Oguntade, revealed this at a media briefing in Lagos on Tuesday, marking the end of his tenure as council president.
Oguntade noted that the recapitalisation drive was a welcome development long overdue for the industry’s stability and growth. He said, “We already know from statistics that over 60 per cent of existing underwriters will survive the process, which is a positive sign. What may hinder others are the stringent regulatory reforms now enforced by the National Insurance Commission (NAICOM), which will no longer allow firms to slide into distress before acting.”
The new Nigerian Insurance Industry Reform Act (NIIRA) 2025 significantly raised capital requirements across the board. Non-life insurers must now maintain a minimum capital base of ₦15 billion, life insurers ₦10 billion, while reinsurance firms face the steepest threshold at ₦35 billion. Oguntade, however, clarified that brokers would not be subjected to the same recapitalisation demand, as they do not carry underwriting risks. “Professional indemnity remains sufficient for brokers since we don’t hold premiums beyond the legal window or assume liabilities,” he said.
Oguntade highlighted that NIIRA 2025 was already yielding results, with improved turnover and stronger participation from brokers across Nigeria. He revealed that insurance penetration could rise from 5 to 10 per cent within three years as more states adopt compulsory insurance schemes and domesticate related laws. States like Oyo and Ogun, he added, have established insurance committees to ensure compliance with the new building insurance mandates introduced under NIIRA.
Reflecting on his administration’s achievements, Oguntade announced that the council’s new annex building—named the Olola Olabode Ogunlana NCRIB Annex—is now over 70 per cent complete, underscoring NCRIB’s commitment to infrastructure and institutional growth. He also celebrated the Lifetime Achievement Award bestowed on industry veteran Olola Ogunlana by the British Insurance Brokers Association in 2025. Oguntade’s successor, Mrs. Ekeoma Ezeibe, lauded his leadership and pledged to sustain the council’s progress as she assumes office this week.
source: punch