Yemisi Izuora
The National Insurance Commission (NAICOM), has identified the Nigerian Insurance Industry Reform Act 2025 (NIIRA 2025) as a landmark
legislation designed to strengthen financial soundness, enhance policyholder
protection, and align the industry with global best practices. As Nigeria aspires to a $1 trillion economy by 2030, insurance must evolve from being a marginal
player to becoming a central pillar of economic stability and growth.
According to the Commissioner for Insurance Olusegun Ayo Omosehin, the NIIRA 2025 represents a forward-looking framework designed to secure long-
term stability, foster innovation, and position the industry for sustainable growth
and global competitiveness.
The Commissioner speaking at a summit convened by EY as part of
its commitment to shaping the future in Lagos, noted that since the Act came into force, NAICOM has taken decisive steps to ensure clarity, transparency, and orderly implementation.
Represented by Usman Jankara, Deputy Commissioner for Insurance (Finance & Administration) at the Agency, Omosehin, said the NAICOM in pursuing policies to ensure implementation of the Act, has issued Guidelines and Circulars such as the Policy Circular and then
Guidelines on Minimum Capital Requirement (MCR) detailing admissible and
non-admissible assets, liabilities, and compliance timelines.
On Mandatory Submission of Recapitalization Plans, the Commissioner said all insurers and reinsurers submitted their plans by the September 30 deadline. The plans where reviewed and the outcome conveyed to the affected
companies. Monthly progress reporting is now compulsory.
He also mentioned Regulatory Oversight, understand which a dedicated Recapitalization Committee monitors compliance, reviews monthly returns, and engages stakeholders continuously.
Under the Capital Verification Framework, this he said is meant to guarantee integrity and that NAICOM partnered with the Big 4 audit firms—including EY—for independent verification of compliance with the Minimum Capital. This
collaboration ensures credibility, transparency, and confidence in the
process.
With the Escrow Account Requirement, funds raised for recapitalization shall
be deposited in dedicated escrow accounts with the Central Bank of
Nigeria, reinforcing governance and safeguarding policyholder
interests.
Guidelines on Reinsurance has also been issued, he said adding, “We have also issued exposure drafts of Guidelines for Registration and Renewals, as well as
Guidelines for Foreign or International Health Insurance & Reinsurance
Providers, for operators’ and stakeholders’ comments and inputs. Additional
Guidelines currently in the works include Guidelines on Product Development
and Sale, Suitability and Fit-and-Proper for Principal Officers, with others to
follow such as Guidelines on Claims Management, Takaful Operations, and
Microinsurance, etc.”
So far he mentioned that industry response has been encouraging with a significant number of insurers have indicated readiness for capital verification. “Boards have approved strategies for fresh capital injection, mergers, and operational restructuring. The Commission has completed reviews of recapitalization plans and issued feedback to institutions.”