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The ongoing recapitalisation of Nigeria’s insurance industry received a major push on Tuesday as the National Insurance Commission (NAICOM) and the Securities and Exchange Commission (SEC) pledged to work more closely together to strengthen reforms across the financial services sector.
In a statement released by NAICOM, the Commissioner for Insurance, Mr Olusegun Omosehin, led a delegation on a courtesy visit to the Director-General of SEC, Mr Emomotimi Agama, at the Commission’s headquarters in Abuja.
The visit followed NAICOM’s recent circular to insurance operators, where the regulator announced its readiness to collaborate with relevant government agencies including SEC, the Corporate Affairs Commission (CAC), the Federal Inland Revenue Service (FIRS), and other stakeholders. The aim is to secure incentives and concessions that could ease compliance challenges and lower the cost of recapitalisation for insurance firms.
Mr Agama congratulated NAICOM on the recent signing of the Nigeria Insurance Industry Reform Act 2025 into law by President Bola Ahmed Tinubu. He described the new law as a “new dawn for the insurance industry,” adding that it would help deliver meaningful reforms that strengthen the entire financial services sector.
In his remarks, Mr Omosehin explained that NAICOM’s visit was to reinforce the importance of regulatory collaboration. He stressed that recapitalisation of insurance companies is not only a policy directive but has now become a legislative mandate with the passage of the new law. According to him, the process aims to transform the insurance sector, strengthen institutions, and ensure better services to policyholders.
“Recapitalisation is focused on repositioning the industry for growth and ensuring that companies are financially stronger and more capable of meeting their obligations to Nigerians,” the statement noted.
Mr Agama assured the delegation that the SEC would provide full support to NAICOM and the insurance operators throughout the recapitalisation exercise. He said the capital market regulator would make its expertise available and guide the insurance regulator to deepen reforms in the sector.
The SEC boss further urged NAICOM to regard the commission as a strategic partner in the reform journey, promising that collaboration would continue beyond the current exercise. He explained that the SEC has fully digitalised its operations and encouraged insurance operators to embrace digital transformation as well. According to him, greater use of technology will not only enhance efficiency but also accelerate the pace of reforms within the insurance space.
Delivering a vote of thanks, Dr Usman Jankara, Deputy Commissioner for Insurance (Technical) at NAICOM, praised the SEC leadership for demonstrating strong commitment to the growth of Nigeria’s insurance sector. He appealed for continued guidance and support, noting that a stronger partnership between both agencies is essential to strengthening Nigeria’s entire financial ecosystem.
Industry observers have long argued that Nigeria’s insurance industry, though with significant potential, has remained underdeveloped compared to banking and capital markets. Penetration levels are still below 1% of GDP, far behind many other African economies. Weak capitalisation of insurance firms has also limited their capacity to take on big-ticket risks, leaving multinational firms to rely heavily on foreign insurers and reinsurers.
The recapitalisation exercise, which requires companies to raise their minimum capital base, is expected to create stronger and more competitive insurance firms. Analysts believe that successful implementation will not only protect policyholders but also attract new investments into the sector.
The push for stronger insurance companies also aligns with the federal government’s wider economic reform agenda under President Bola Tinubu, aimed at strengthening key institutions, boosting investor confidence, and ensuring the financial system supports long-term growth.
With SEC and NAICOM now committed to deeper collaboration, stakeholders say the recapitalisation exercise stands a better chance of being implemented smoothly, while ensuring that operators remain financially stable and able to deliver quality services to Nigerians.
