National Insurance Commission (NAICOM) has firmly stated that there will be no extension for the ongoing insurance industry recapitalization exercise, maintaining that the July 31 deadline is legally binding.
The Commissioner for Insurance, Olusegun Omosehin, made this known during a media briefing in Lagos, expressing concern over the slow response from many insurance firms despite the fast-approaching 2026 deadline. He emphasized that the timeline is anchored in the Nigeria Insurance Industry Reform Act of 2025 and can only be altered through legislative amendment by the National Assembly with presidential approval.
NAICOM warned that it will not consider last-minute requests for deadline extensions, urging operators to act promptly. Although around 20 firms have initiated capital verification with auditors, overall industry readiness remains low.
The Commission explained that the recapitalization effort is designed to strengthen the insurance sector, enabling it to handle larger, more complex risks and support Nigeria’s long-term economic goals. Firms unable to meet the requirements independently were advised to pursue mergers or acquisitions early, avoiding rushed and poorly structured deals that could create future liabilities.
NAICOM also disclosed that it is currently assessing the financial status of all insurers and will release its findings later. To ensure transparency, the regulator has mandated that all recapitalization funds be held in designated escrow accounts, reinforcing strict compliance with the process.
