Nigeria’s insurance industry has entered a decisive phase in its recapitalisation journey as the National Insurance Commission (NAICOM) confirms that 18 insurance companies—representing 40.13% of all licensed operators—have formally declared readiness for capital verification.

This revelation signals both progress and urgency, leaving 49 companies—equivalent to 59.87% of the market—yet to meet verification readiness, despite fast-approaching deadlines in the recapitalisation calendar.

The development was announced during the EY Insurance Summit 2025 by the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, represented by the Deputy Commissioner (Technical), Dr. Usman Jankara.

“We can confirm that 18 insurance companies have indicated their readiness for capital verification. We are pleased with the progress, but we expect more speed from the rest of the industry,” Omosehin stated.

Nigeria Has 67 Licensed Insurers; Full Breakdown

As of August 2023, Nigeria has 67 licensed insurance companies, according to NAICOM’s official data:

• Composite insurers: 12
• Non-life insurers: 27
• Life insurers: 13
• Reinsurers: 3
• Takaful (Islamic insurers): 4
• Microinsurance companies: 8

This industry composition underscores the significance of the recapitalisation programme, which aims to stabilise, modernise, and strengthen insurer solvency across all categories.

Recapitalisation Progress: 18 Ready, 49 Not Yet Compliant

The current readiness profile reveals a stark contrast:

• 18 firms ready for verification — 40.13%
• 49 firms not yet ready — 59.87%

With the countdown to the deadline already in motion, analysts say the imbalance is a red flag requiring urgent intervention by boards and shareholders.

Capital Verification Mechanism Strengthened by Global Auditors

To guarantee transparency and investor confidence, NAICOM has partnered with Big Four audit firms, including EY, to verify insurers’ capital strength.

Omosenhin described the exercise as an integrity-driven process:

“The use of internationally recognised audit firms ensures credibility and eliminates any doubts regarding the financial health or compliance claims of insurance operators.”

Key Recapitalisation Deadlines

• September 30, 2025 – Submission of recapitalisation plans
• November 2025 – June 2026 – Capital verification window
• July 30, 2026 – Final compliance & enforcement

Operators who fail to meet minimum capital thresholds risk losing their licences.

New Capital Requirements Now in Force

• Non-life insurers: ₦15 billion (from ₦3bn)
• Life insurers: ₦10 billion (from ₦2bn)
• Reinsurers: ₦35 billion (from ₦10bn)

NAICOM says the new capital structure will boost underwriting capacity, enhance claims payment, strengthen market stability, and attract foreign investment.

Expert Reactions

Economist Celestine Ukpong: “A Warning Sign for the Industry”

Economist Celestine Ukpong said the 40.23% readiness rate reflects both progress and deep industry vulnerability.

“If only 18 out of 67 firms are ready at this point, it means the sector has serious liquidity and structural issues. Recapitalisation is not optional, it’s survival. The 59.87% unpreparedness rate should worry regulators, investors, and policyholders alike.”

He urged NAICOM to intensify engagement and provide advisory support to firms lagging behind.

Chartered Accountant Peter Adebayo: “The Market Will Restructure Itself”

Chartered accountant Peter Adebayo believes the recapitalisation exercise will naturally lead to mergers, acquisitions, and exits, strengthening the ecosystem in the long term.

“Insurance is a trust business. Under-capitalised companies weaken the market. This current verification phase will separate serious players from weak operators. Expect consolidation, fresh investments, and a more credible industry when the dust settles.”

Adebayo added that the partnership with Big Four audit firms is one of the best steps NAICOM has taken in the last decade.

Stakeholders Call for Industry-Wide Collaboration

Expert at EY West Africa Consulting, said the industry must move from compliance mindset to strategic transformation.

“This recapitalisation is more than meeting numbers, it is about building competitive institutions that support Nigeria’s wider economic goals.”

With 18 insurers ready and 49 still unprepared, the recapitalisation process has entered a crucial stage. NAICOM’s strict enforcement stance and global partnerships reflect a resolve to build a stronger, more resilient insurance industry aligned with Nigeria’s long-term economic reforms.