With less than two weeks to the expiration of the insurance industry’s recapitalisation deadline, the National Insurance Commission (NAICOM) has ruled out any adjustment of the July 31 timeline, warning operators yet to meet the new minimum capital requirements under the Nigeria Insurance Industry Reform Act (NIIRA) 2025 to accelerate efforts or risk regulatory sanctions.

The Guardian understands NAICOM’s insistence is causing panic among operators, who have been lobbying for an extension of the deadline.

The commission said the recapitalisation programme is a critical reform aimed at strengthening the industry and positioning it to underwrite larger and more sophisticated risks.

The Commissioner for Insurance, Olusegun Omosehin, at the investiture of Akinjide Orimolade as the 53rd President and Chairman of Council of the Chartered Insurance Institute of Nigeria (CIIN), said the recapitalisation exercise remained a critical pillar of the commission’s ongoing reforms aimed at building a stronger, more resilient and consumer-focused industry.

Omosehin said the new minimum capital requirement is designed to improve insurers’ claims-paying capacity, strengthen their balance sheets, support higher domestic risk retention and prepare the industry for a risk-based capital regime.

“With less than 14 days to the July 31 deadline, we commend operators that have made significant progress in raising capital, engaging investors, strengthening governance and submitting for the commission’s verification process.

However, the deadline is not symbolic; it is regulatory, and the industry must treat it with the urgency it deserves,” he said.

The commissioner assured stakeholders that NAICOM would maintain a transparent, fair and firm process, stressing that every operator must demonstrate financial soundness, regulatory compliance and operational readiness.

He said stronger capitalisation must ultimately translate into better service delivery, prompt settlement of claims, improved consumer protection and greater public confidence in insurance.

Omosehin said NIIRA 2025 has provided a stronger legal framework for a more resilient, better-governed and responsive insurance market, adding that NAICOM’s reform agenda is focused on market conduct, policyholder protection, governance, insurance penetration, financial inclusion and responsible innovation.

“The strength of insurance depends not only on capital and regulation but also on professionalism, ethics, innovation and public confidence.

A trusted insurance market cannot be built on capital alone. It requires competent professionals, ethical institutions, credible advice and fair treatment of policyholders,” he stated.

The Commissioner commended the outgoing CIIN President, Yetunde Olubumi Ilori, for what he described as her visionary and impactful leadership, noting that her commitment to professional excellence and stakeholder engagement has strengthened both the institute and the wider insurance industry.

Omosehin urged the new CIIN President to prioritise three key areas during his tenure: deepening professionalism and ethics, building a sustainable talent pipeline and championing innovation to improve underwriting, claims management, cybersecurity awareness and technology-driven insurance services.

Meanwhile, the Chairman of the House of Representatives Committee on Insurance and Actuarial Matters, Ahmadu Jaha, reaffirmed the National Assembly’s commitment to strengthening Nigeria’s insurance industry through legislation.

Jaha said this was aimed at improving regulation, consumer protection and insurance penetration.

He said the House of Representatives would continue to support legislative initiatives that promote innovation, attract investment and enhance public confidence in the insurance sector.