The National Insurance Commission has insisted that there will be no extension of the ongoing recapitalisation deadline in the insurance industry, saying the timetable is fixed in law and cannot be shifted.
NAICOM’s Deputy Commissioner for Insurance (Technical), Dr Usman Jankara, who represented the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr Olusegun Omosehin, at a seminar for insurance journalists in Abuja on Tuesday, made the commission’s position clear during a question-and-answer session.
He said, “I would like to state unequivocally that the recapitalisation deadline will not be extended. The basic reason is this: it is the law.”
According to him, any change would require a fresh legislative process and presidential assent.
“Once it’s the law, nobody has the power to extend what the law had indicated as a deadline. If you need to do that, you would need to go back to the National Assembly, get that section amended, and get Mr President’s assent. It is not a journey we’re willing to embark on,” he added.
Jankara said the deadline contained in the Nigerian Insurance Industry Reform Act 2025 remains July 30, 2026, insisting that serious operators should be able to comply.
“We believe that the deadline as clearly highlighted by NIRA is doable, it is reasonable, and it is something serious players within the insurance sector will be able to meet within that time frame,” he said.
He expressed confidence that the process would result in a stronger industry.
“By the end of the deadline provided by NIRA, that is July 30, 2026, we’ll be coming out to Nigerians with new insurance companies that have met the requirement, that are stronger, that are more well-managed, and that have the financial muscles to meet their obligations to Nigeria,” he added.
Earlier, Jankara delivered the commissioner’s welcome remarks, apologising for Omosehin’s absence.
He told journalists that the seminar was designed to deepen trust and engagement between NAICOM and the media.
“Let me start by saying that this gathering is not just an event; it is a strategic platform to strengthen engagement and trust between the National Insurance Commission and media professionals who play a very critical role in shaping public perception of the Nigerian insurance industry,” he said.
He outlined the objectives of the session to include collaboration, accurate reporting and highlighting reforms, adding that the media was central to improving insurance understanding and uptake.
Jankara said NAICOM, under its current leadership, had pursued reforms that balance prudential oversight with innovation.
These include risk-based supervision targeted at high-risk institutions, improved market conduct, quicker claims settlement and “zero tolerance for non-settlement of complaints or claims.”
He said the commission was also driving inclusive growth through microinsurance, takaful, insurtech and MSME-focused products, while creating space for innovation via a technology directorate, innovation hub and regulatory sandbox covering ideas such as embedded insurance and usage-based pricing.
He added that NAICOM was collaborating with the Nigeria Police Force to enforce compulsory third-party motor insurance and improve systemic resilience.
According to him, stakeholder engagement and enforcement have helped change Nigerians’ perception of insurance from a misunderstood product to one that is “gradually being trusted.”
On the recapitalisation exercise, Jankara said it represented a structural reset for the market.
“The ongoing recapitalisation exercise in the Nigerian insurance industry is more than just a regulatory milestone. It is a bold transformation that will redefine the Nigerian insurance industry for global relevance,” he said.
He explained that NAICOM was introducing a risk-based capital framework and using the Big Four auditing firms for independent capital verification.
“This approach is to ensure and guarantee confidence, fairness and trust in the process, reinforcing the industry’s commitment to global best practices,” he said, adding that the reforms would support the Federal Government’s aspiration of building a $1tn economy.
He described the Nigerian Insurance Industry Reform Act 2025 as a modern framework that strengthens supervision, innovation and consumer protection, including clearer claims timelines, tougher penalties and a new Insurance Policyholders’ Protection Fund to safeguard consumers in cases of insolvency.
“NIRA is therefore not just a law; it is a blueprint for a stronger, more inclusive insurance industry,” he said.
Looking ahead, he said NAICOM would intensify consumer protection, strengthen supervision, expand data and analytical capability, deepen insurance penetration, and promote sustainability and innovation.
The Nigerian Insurance Industry Reform Act 2025 was signed into law in August 2025, replacing outdated insurance legislation and modernising the regulatory framework for the sector.
It significantly raises minimum capital requirements for insurers and introduces a risk-based capital regime to ensure firms hold capital aligned with their risk exposure.
The Act also strengthens consumer protection, enhances market conduct standards, and establishes an Insurance Policyholders’ Protection Fund to safeguard policyholders in cases of insolvency.