The National Insurance Commission (NAICOM) and the Nigerian Insurers Association (NIA) have stressed the need for stronger collaboration to improve regulatory compliance and reduce infractions that often delay the approval of insurers’ audited financial statements.

The call was made at a stakeholders’ session jointly organised by the NIA and NAICOM in Lagos, which brought together finance, audit and compliance executives of insurance companies. Also in attendance were external auditors, actuaries and industry consultants.

Speaking at the forum, Chairman, NIA Accounting Technical Committee, Dr Emmanuel Otitolaiye, said sustained engagement between regulators and operators was essential to ensuring accurate financial reporting, reducing avoidable errors and accelerating regulatory approvals, particularly at a time of heightened reform.

He explained that the session was convened to address key issues identified by NAICOM during its review of insurers’ 2024 financial statements, stressing that the regulator’s approach was not punitive but corrective and collaborative.

“The objective is to ensure that learning points from the 2024 reviews are fully embedded in the 2025 financial statements, so that when accounts are submitted, there will be fewer issues and approvals can be granted more expeditiously,” Otitolaiye said.

He noted that with the recapitalisation exercise underway, insurers could no longer afford repeated returns of financial statements for corrections, as regulatory timelines are increasingly tight.

“This is not a year in which the luxury of time exists for NAICOM or for operators,” he added.

Director-General of the NIA, Abimbola Odukale, said the annual engagement had continued to strengthen trust and understanding between member companies and the regulator, adding that deeper collaboration was in the overall interest of the industry.

She expressed optimism that ongoing dialogue would further improve compliance levels and enhance the credibility of the insurance market.

Also speaking, Director of Supervision at NAICOM, Oluwatoyin Charles, reaffirmed the commission’s commitment to creating an enabling environment for a stable and resilient insurance industry, particularly as operators navigate the demands of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and the post-implementation phase of IFRS17.

“As we gather today, our discussions are even more significant in the context of recapitalisation under NIIRA 2025.

“This reform is designed to strengthen solvency, enhance risk-bearing capacity, and reposition the industry for sustainable growth and public confidence,” she said.

Charles urged insurers to uphold the highest standards of accuracy and transparency in financial reporting, describing financial integrity as a promise that underpins trust and long-term stability.

“Every member must tell the truth, every report must earn trust, and every decision must protect the future of the industry,” she said.

The Senior Financial Analyst in the Office of the Deputy Commissioner (Technical) at NAICOM, Gabriel Oloba, delivered a detailed presentation highlighting common errors and regulatory concerns observed in insurers’ financial statements, particularly weakness in disclosures and reconciliation processes.

He warned that such lapses often prolong regulatory reviews and approvals, and provided practical guidance on improving compliance with reporting standards to ensure smoother and faster assessment by the commission.

In his closing remarks, Oloba urged insurers to make full and clear disclosures relating to the new capital regime, in line with existing frameworks such as Minimum Capital Requirement (MCR), Risk-Based Capital (RBC), Capital Adequacy, and the Solvency Control and Intervention Framework (SCIF).

The Deputy Director of Supervision at NAICOM, Cyprian Amadi, also addressed participants on recapitalisation, stressing the importance of clear compliance timelines, accurate capital commutation, and consistent progress reporting.

He noted that some insurers had failed to submit detailed recapitalisation plans or clearly specify capital requirements across business lines, particularly among composite operators.

Amadi warned that timely and accurate monthly progress reports were critical to the success of the exercise, describing recapitalisation as a transformative initiative aimed at strengthening the industry’s resilience and global competitiveness.