Insurance coverage recapitalisation: NAICOM guidelines out deadline extension

The Nationwide Insurance coverage Fee formally dominated out any extension for the continuing insurance coverage recapitalisation train, with the Commissioner for Insurance coverage, Olusegun Omosehin, declaring, “The 31 July deadline is sacrosanct.”

Talking at a high-level media briefing in Lagos, Omosehin voiced sturdy concern over what he described because the “quietness” and sluggish tempo of motion amongst a number of corporations, regardless of the seriousness of the approaching 2026 deadline.

“It’s embedded within the regulation, and as a regulator, we should not have the powers to change a date set by an Act of the Nationwide Meeting,” he defined, noting that the timeline is a statutory requirement underneath the Nigeria Insurance coverage Business Reform Act of 2025.

“We might not be drawn right into a last-minute rush or entertain pleas for extensions,” Omosehin cautioned, emphasising that any adjustment to the schedule would require a proper modification of the Act by the Nationwide Meeting and subsequent presidential assent, a path he said the Fee is just not ready to take.

He additional famous that, whereas 20 insurance coverage firms have formally stepped ahead to start their capital verification course of with the “Massive 4” auditing corporations, the extent of urgency throughout the board doesn’t but match the necessities of the regulation.

“We wish a stronger, extra resilient business that may assist Nigeria’s goal of a $1tn economic system,” the Commissioner added, stressing that the last word purpose is not only capital however the functionality to underwrite giant dangers and defend policyholders.

“Capital alone is just not the purpose; it’s in regards to the functionality to underwrite giant dangers,” he reiterated, whereas urging operators who might lack the “stand-alone stamina” to satisfy the brand new necessities to think about mergers and acquisitions instantly somewhat than ready.

“We warn towards ‘emergency marriages’ concluded on the eleventh hour, as such advert hoc preparations typically result in lingering liabilities and post-merger integration crises,” Omosehin remarked, confirming that the Fee is presently scanning all working corporations and can quickly make the outcomes of this regulatory evaluation public.

To take care of the integrity of the method, he concluded by reminding the business that each one funds raised should be deposited in designated escrow accounts, stating, “The 31 July deadline is sacrosanct.”