The National Insurance Commission (NAICOM) has engaged EY alongside three other global audit giants to conduct independent verification of the capital positions of all insurance and reinsurance companies, as the regulator strengthens its capital verification regime to bolster credibility in the ongoing recapitalisation exercise.
The regulator said the appointment of the “Big Four” firms: EY, PwC, KPMG and Deloitte marks a critical step in safeguarding the credibility of the process, which forms a core component of the implementation of the Nigeria Insurance Industry Reform Act (NIIRA) 2025.
Commissioner for Insurance, Olusegun Omosehin, disclosed the development during the EY Insurance Summit held in Lagos. Omosehin was represented by the Deputy Commissioner for Insurance (Finance and Administration), Usman Jankara.
He said the four firms were selected based on their global reputation, technical capacity and overwhelming dominance in Nigeria’s corporate audit market, where they control more than 99 per cent of the top-listed companies’ audit share.
According to him, the engagement ensures that any insurer certified as having met the new Minimum Capital Requirement (MCR) has done so through “a transparent and credible process.”
He likened the verification exercise to “a scanner at airports,” insisting that every operator must pass through a uniform, rigorous assessment to validate compliance with the new capital thresholds.
The summit, he said, reflects a renewed collaboration between the regulator and industry stakeholders at a defining moment for the sector. “Today’s dialogue is a commendable development, as it will foster renewed engagement and collaboration for the growth of the Nigerian insurance industry, as well as contribute to the resilience and competitiveness of the Nigerian economy,” he stated.
Omosehin described NIIRA 2025 as a landmark legislation aimed at strengthening insurers’ financial soundness, enhancing policyholder protection and aligning the domestic market with global standards. He maintained that insurance must transition from its historically marginal role to becoming a central pillar of economic stability as Nigeria pursues a $1 trillion GDP target by 2030.
He listed notable milestones achieved since the law came into force, including the issuance of the new MCR framework.
All insurers and reinsurers, he confirmed, submitted their recapitalisation plans by the September 30 deadline, while NAICOM’s Recapitalisation Committee continues to monitor compliance through monthly reporting.
The commission also revealed that additional regulatory guidelines were in the pipeline, covering product development, suitability standards, claims management, Takaful, microinsurance and cross-border reinsurance placements. Exposure drafts on registration and renewal procedures have similarly been released for industry feedback.
Despite macroeconomic challenges, restructuring hurdles and technical capacity gaps, NAICOM noted that operators had shown strong commitment, with many already at advanced stages of capital validation. Several boards have approved mergers, reorganisations and fresh capital-raising plans to meet the new requirements.
Meanwhile, EY said the sector is on the cusp of transformation. Welcoming participants to the summit, Ben Afudego, Partner and Consulting Leader for West Africa at EY, described NIIRA as a catalyst capable of reshaping the market.
He said additional capital would empower insurers to underwrite big-ticket risks, strengthen internal systems and attract quality talent needed to position the industry for future growth.
EY projected a stronger and more resilient sector, better positioned to support industries, absorb major risks and contribute significantly to national economic expansion.
Beyond recapitalisation, NAICOM outlined broader strategic priorities, including digital transformation, Environmental, Social and Governance (ESG) integration, data-driven supervision and tapping into African Continental Free Trade Area (AfCFTA) opportunities to enhance continental competitiveness.
