Nigeria’s insurance industry is no stranger to reform. Over the decades, the sector has witnessed several attempts at recapitalisation, each designed to strengthen operators, boost confidence, and expand market penetration. Yet, many of these efforts have been marred by implementation hiccups, policy reversals, and resistance from stakeholders, leaving the industry struggling to match the pace of growth seen in banking and other segments of financial services.
With the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, however, stakeholders believe the tide could finally be turning. To complement the new law, Inspenonline has launched a research-driven platform: the Insurance Industry’s Think-Tank on NIIRA and Recapitalisation.
The initiative, according to Inspenonline’s Publisher/Editor, Chuks Udo Okonta, is designed to provide the critical data and insights required to guide the sector through this transformative era. The Think-Tank will gather perspectives from Chief Executive Officers, shareholders, policyholders, and other key players, collating their inputs into daily publications and periodic communiqués that can shape both policy direction and industry practices.
A Look Back: Recapitalisation and Its Pitfalls
Nigeria’s recapitalisation history is filled with lessons. In 2007, under the then-Consolidation exercise, insurers were required to shore up their capital base. While some firms successfully merged or recapitalised, others collapsed under the weight of regulatory demands, leading to reduced competition and public skepticism.
At the time, Mr. Fola Daniel, then Commissioner for Insurance, conceded that “recapitalisation was necessary to strengthen the sector, but the process exposed the weak corporate governance culture among many operators.”
A more recent attempt in 2019, driven by the National Insurance Commission (NAICOM), also stumbled. That exercise faced multiple extensions, lawsuits, and widespread pushback before it was eventually suspended. Many stakeholders faulted its timing and approach.
Mrs. Yetunde Ilori, Director-General of the Nigerian Insurers Association (NIA), had warned during that period: “Any recapitalisation exercise not backed by credible actuarial data and proper stakeholder consultation risks repeating the failures of the past.”
Similarly, shareholders under the Independent Shareholders Association of Nigeria (ISAN) described the attempt as “well-intentioned but poorly timed,” particularly as many insurers were still recovering from the shocks of the global pandemic.
The banking sector, by contrast, had successfully consolidated under recapitalisation though different in mode of operations and emerged stronger and more competitive. Insurance, however, remained stuck, with penetration hovering below 1% of GDP, one of the lowest in Africa.
The Promise of NIIRA and the Think-Tank Approach
The NIIRA 2025 is designed to break that cycle by providing a stronger legal and regulatory framework that promotes solvency, innovation, and investor confidence. Yet, as Okonta explained, legislation alone cannot drive growth. It requires industry-wide collaboration and a solid knowledge base to make reforms sustainable.
This is where the Think-Tank comes in. By capturing diverse viewpoints through interviews and questionnaires, the initiative hopes to build a living knowledge hub that not only documents challenges but also generates actionable solutions. Reports will be published in both print and visual formats, ensuring wider accessibility.
“The NIIRA has provided a foundation, but it is research-driven initiatives like this that will determine how far we go,” Okonta stressed. “The industry cannot afford another cycle of half-baked recapitalisation. We must get it right this time by grounding our actions in data and collaboration.”
Current Leadership’s Perspective: A Fresh Commitment
NAICOM’s current leadership, under Commissioner for Insurance and Chief Executive Officer, Mr. Olusegun Ayo Omosehin, has pledged to do things differently. Omosehin has repeatedly emphasized that recapitalisation under NIIRA will not be a mere directive but part of a carefully coordinated growth agenda.
In a recent industry forum, Omosehin said: “The mistakes of the past must serve as our compass. Recapitalisation is not just about raising figures; it is about strengthening institutions, protecting policyholders, and aligning with Nigeria’s $1 trillion economy agenda. That is why stakeholder engagement and research-backed policies are at the heart of our approach.”
He further noted that NIIRA provides a unique opportunity to reset the industry and that the Commission is committed to working with platforms like Inspenonline’s Think-Tank to ensure that every voice counts.
Why This Time Could Be Different
Unlike previous recapitalisation drives, which often appeared top-down and disconnected from market realities, NIIRA is being paired with collaborative mechanisms such as the Think-Tank. This feedback loop between regulators, operators, and consumers has the potential to prevent policy missteps and ensure that reforms are grounded in practical realities.
If successful, this could dismantle long-standing mistrust of insurance, boost product uptake, and attract fresh investment into the sector. More importantly, it could help insurance play a more meaningful role in Nigeria’s broader economic growth strategy.
A Call to Action
Okonta has called on insurers, shareholders, policymakers, and policyholders alike to support the initiative, stressing that the sector’s success depends on collective wisdom and shared responsibility.
The Nigerian insurance industry has stumbled before. But with NIIRA as the guiding framework, NAICOM’s renewed commitment to inclusive reform, and the Think-Tank as its knowledge engine, stakeholders believe the story can finally be rewritten, this time with growth, trust, and resilience at its core.
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