Backs mergers as operators seek a lifeline
The National Insurance Commission (NAICOM) has reassured the market that no licensed insurance company will be allowed to collapse as the July 31, 2026, recapitalisation deadline draws closer.

The Commissioner for Insurance, Olusegun Omosehin, said the regulator had identified financially weak operators and was already engaging them through restructuring arrangements, mergers, and acquisitions to ensure their survival and protect policyholders.

Omosehin, who spoke at the weekend, during the 2026 awards and recognition ceremony of the Nigerian Insurers Association (NIA) in Lagos, said the intervention was designed to prevent systemic disruption in the sector.

The Commissioner for Insurance, who was represented by the Deputy Commissioner for Insurance (Finance and Administration), Ekerete Ola Gam-Ikon, said: “We have made it clear that no insurance company will be allowed to fail. We are engaging weaker firms and supporting them through restructuring, mergers or acquisitions to ensure continuity.”

The NIA Chairman, Kunle Ahmed, said the industry is responding to the recapitalisation exercise with a renewed sense of urgency, noting that operators are actively exploring multiple pathways to meet the new capital thresholds.

Meanwhile, stakeholders, however, said that while NAICOM’s stance might prevent immediate failures, it also underscores the urgency for operators to take decisive steps to shore up their balance sheets.

A senior industry executive, Fatai Ogunleye, noted that the “no-failure” posture should not be seen as a bailout, warning that firms that fail to attract fresh capital risk being forced into unfavourable mergers.

Another operator said recapitalisation had exposed structural weaknesses in the industry, particularly among undercapitalised firms that have struggled with claims settlement and underwriting capacity.

Also, a Lagos-based investment analyst said, “We are seeing increased due diligence activity from offshore investors. The recapitalisation is creating entry opportunities, but investors are being selective, focusing on firms with strong governance and growth potential.”

NAICOM, however, said that the ongoing capital verification exercise, expected to be completed by June, would determine which operators meet the new thresholds and retain their licences.