Nigeria’s insurance industry has entered a new phase as the National Insurance Commission (NAICOM) begins issuing fresh operating licences to insurance companies that successfully complied with the Commission’s new minimum capital requirements. The move marks a major milestone in the ongoing NAICOM insurance recapitalisation programme, which is designed to build a stronger, more financially stable, and globally competitive insurance sector.
Speaking during the presentation of the new licence certificates at NAICOM’s headquarters in Abuja, Commissioner for Insurance Olusegun Omosehin congratulated the successful companies, describing the development as the beginning of a new regulatory era. According to him, stronger capitalization will pave the way for better corporate governance, increased product innovation, improved operational standards, and greater confidence in Nigeria’s insurance market.
Omosehin encouraged the newly licensed insurers to make effective use of their stronger capital base by introducing innovative insurance products and expanding coverage across the country. He noted that the Commission expects higher levels of professionalism, operational efficiency, and better returns for investors, adding that the recapitalisation exercise has laid a solid foundation for the industry’s next stage of growth.
The Commissioner also revealed that NAICOM’s next major reform will be the introduction of the Risk-Based Capital (RBC) framework. Under the new system, insurance companies will be required to maintain capital levels that accurately reflect the level of risk associated with their business portfolios. The initiative is expected to strengthen financial stability and improve risk management across the industry.
A total of 43 insurance companies have been declared compliant with the new capital requirements and are expected to receive their updated licences in phases. NAICOM reaffirmed its commitment to maintaining strict regulatory oversight while eliminating unnecessary barriers to growth. The Commission believes the recapitalisation programme will improve insurers’ financial strength, enhance their ability to settle claims promptly, and increase public trust in Nigeria’s insurance industry, positioning the sector for sustainable long-term growth.
