The National Insurance Commission (NAICOM) may have extended the deadline for the ongoing capital verification exercise following the expiration of the May 31 deadline and the large volume of applications awaiting regulatory review.

However, as of press time, no official communication was issued on the regulatory requirement.

A source close to the commission told The Guardian that more than 25 insurance operators have submitted applications for capital verification out of the industry’s 58 licensed insurers, prompting speculation that additional time may be granted to enable NAICOM and four auditors engaged for the purpose to conclude their assessment process and allow affected firms to complete outstanding requirements.

The recapitalisation verification exercise forms part of the implementation framework of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which seeks to strengthen operators’ capital base, enhance underwriting capacity and position the industry for greater competitiveness.

The development comes amid heightened regulatory efforts to deepen market stability and ensure that operators meet the new capital requirement prescribed under the reform law.

The issue featured prominently at the 21st meeting of the insurers’ committee held in Lagos, where regulators and industry stakeholders reviewed the progress of the recapitalisation, consumer protection and strategies to position the industry for opportunities under the African Continental Free Trade Area (AfCFTA).

Although NAICOM has yet to make an official announcement on a possible extension, industry stakeholders said the volume of submissions and ongoing verification processes may necessitate additional time to ensure a transparent and orderly implementation of the exercise.

Speaking during a briefing after the meeting, Chairman of the Communications and Stakeholders Engagement Sub-Committee of the Insurers’ Committee, Ebelechukwu Nwachukwu, said the Commissioner for Insurance, Segun Omosehin, reminded operators that only a few weeks remain before the deadline.

According to her, auditors appointed by NAICOM were conducting verification exercises across insurance companies, while firms are expected to formally invite the commission for verification before May 31.

“The commission stressed the importance of treating the recapitalisation exercise with urgency, noting that compliance remains a key requirement for strengthening the industry,” Nwachukwu said.

The committee also reviewed enforcement efforts surrounding compulsory third-party motor insurance, particularly NAICOM’s collaboration with the Nigerian Police to curb the proliferation of fake insurance policies.

Nwachukwu revealed that the commissioner expressed concern over the activities of illegal operators in the market and commended the Association of Registered Insurance Agents of Nigeria for supporting efforts to eliminate fake insurance practices.

The meeting further examined NAICOM’s travel insurance guidelines, which are aimed at ensuring effective regulation and improved protection for subscribers.

On consumer protection, the committee reviewed the inauguration of the Insurance Policy Protection Fund Committee, expected to safeguard policyholders and ensure that valid claims remain protected.