The Good Governance Assembly (GGA) has backed the leadership of the National Insurance Commission (NAICOM) under Commissioner for Insurance, Olusegun Ayo Omosehin, urging industry stakeholders to support ongoing reforms in Nigeria’s insurance sector.

The group said the recently concluded recapitalisation exercise and other regulatory measures undertaken by NAICOM were intended to strengthen insurance companies and improve the industry’s capacity to meet its obligations.

In a statement on Tuesday, Chairman of the GGA Board of Leaders, Charles Onoja, said the organisation had reviewed recent developments at the commission and believed the direction of the reforms deserved support.

“We commend the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr Olusegun Ayo Omosehin, for the work he has done to reposition the insurance industry and strengthen regulatory standards,” Onoja said.

“The scale of the recent recapitalisation exercise demonstrates that the commission has remained focused on its responsibility to build a stronger and more sustainable insurance sector.”

Nigeria’s insurance industry recently completed a recapitalisation exercise conducted under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

NAICOM announced in August that the exercise had been completed after a 12-month process, saying it was intended to strengthen the financial capacity and resilience of insurance operators.

The regulator subsequently confirmed that 48 insurance companies and two reinsurance companies had met the new minimum capital requirements.

Omosehin said at a media briefing in September that the exercise resulted in total capital of ₦1.079 trillion, with some operators raising funds through rights issues, private placements, public offers and fresh equity injections.

The GGA said the outcome was significant for an industry expected to protect businesses and individuals against risk while mobilising long-term capital for economic activity.

Onoja argued that strengthening the financial position of insurers should improve their ability to meet obligations and support larger economic activities.

“What is important at this point is to recognise the broader objective of the exercise,” he said.

“The insurance industry cannot remain weak if Nigeria is serious about attracting investment, protecting businesses and supporting economic growth. NAICOM under Mr Omosehin has taken steps towards ensuring that companies operating in the sector have the capacity to meet the demands of a modern economy.”

The recapitalisation programme followed the enactment of NIIRA 2025, which introduced changes to the regulatory framework governing Nigeria’s insurance industry.

NAICOM has said the exercise was undertaken as part of its statutory responsibility to improve financial capacity, solvency and resilience among insurance institutions while strengthening policyholder protection.

The regulator began issuing new licence certificates to companies that met the revised minimum capital requirements in August. It said stronger capitalisation should be accompanied by improvements in corporate governance, product development and service delivery.

NAICOM is also moving towards a risk-based capital framework.

In June, the commission appointed professional services firm Ernst & Young as consulting actuary for the implementation of the framework, which is intended to align capital requirements more closely with the risks undertaken by individual insurance companies.

The GGA said these developments should be considered within the broader effort to strengthen the industry rather than viewed solely through individual regulatory decisions.

It also linked the commission’s reforms to the Federal Government’s economic programme under President Bola Tinubu’s administration.

Onoja said strong regulatory institutions and a more stable insurance industry could contribute to improving the environment for businesses and investors.

“The Renewed Hope Agenda requires strong institutions, responsible regulation and an environment in which businesses can grow and investors can have confidence,” he said.

“We believe the direction being pursued by NAICOM under Mr Omosehin is consistent with these objectives, and he deserves to be encouraged rather than distracted from the task of strengthening the industry.”

The GGA urged insurance companies and other stakeholders with concerns about regulatory decisions to engage NAICOM through appropriate institutional channels.

According to the organisation, disagreements over individual decisions should not undermine confidence in the wider regulatory process.

The call comes against the backdrop of disputes involving some operators affected by regulatory action.

Earlier in September, NAICOM issued a rejoinder rejecting allegations concerning the recapitalisation process and its officials. The commission said the exercise had been conducted in accordance with NIIRA 2025 and its recapitalisation guidelines.

The commission also stated that neither Omosehin nor any NAICOM director had been indicted, charged or found culpable in relation to allegations of fraudulent activity contained in the publication to which it was responding.

Those statements represent NAICOM’s position in the dispute and do not, by themselves, resolve any separate legal or regulatory disagreements involving affected companies.

Onoja said the GGA would continue to follow developments in the insurance industry and support measures it considers consistent with transparency, accountability and sustainable growth.

“We believe that Nigeria needs regulators who are prepared to take difficult decisions in the national interest, and we commend Mr Omosehin for providing that leadership at NAICOM,” he said.

“The insurance industry is an important pillar of the economy, and every effort to strengthen it should receive constructive support.”

The longer-term effect of the recapitalisation exercise will ultimately depend on whether the additional capital translates into stronger insurers, improved claims settlement, greater policyholder protection, better products and increased insurance penetration.

Omosehin himself made a similar point in July, when he said stronger capitalisation needed to result in better service delivery, prompt claims settlement and improved consumer protection.