The Securities and Exchange Commission (SEC) has established a dedicated desk to expedite approvals for insurance sector recapitalisation, with a firm commitment to process complete applications within 14 days.
Ebelechukwu Nwachukwu, head of the Communication and Stakeholders Management Subcommittee, announced this during the 19th Insurers’ Committee meeting in Lagos.
The move follows the recent signing of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law by President Bola Tinubu. The Act introduces sweeping reforms to the insurance sector, including a significant hike in minimum capital requirements aimed at strengthening industry resilience and investor confidence.
Nwachukwu stated that SEC Director-General, Dr Emomotimi Agama, in a presentation to industry stakeholders, reaffirmed SEC’s full support for the recapitalisation drive and emphasised that the capital market regulator sees insurance as a critical ally.
“There cannot be a better ally to the capital market than the insurance industry,” Nwachukwu quoted Agama as saying. “This is the first time we’re seeing such strong collaboration between NAICOM and SEC, and it’s a very strategic move.”
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She noted that SEC had granted approximately nine regulatory concessions to ease the recapitalisation process and also slashed fees to encourage compliance and capital inflows. Agama was reported to have cited the recent raising of over ₦3 trillion in the banking sector as evidence of available investor appetite, urging insurers to position themselves accordingly.
The Commissioner for Insurance, Mr Olusegun Omosehin, reminded stakeholders that the recapitalisation initiative should not be viewed merely as a fund-raising exercise, but as an opportunity to overhaul the industry’s governance structures, rebuild public trust, and expand insurance penetration.
“NAICOM has released a draft of the minimum capital requirement guidelines for industry feedback, along with guidelines on InsurTech and Takaful,” Nwachukwu said.
“They have also asked insurers to submit both recapitalisation plans and intended fund utilisation strategies as part of the approval process.”
Additional regulatory reforms include the imminent release of final capital guidelines and the establishment of a Policyholders’ Protection Fund, to be managed by an independent audit firm. NAICOM also reaffirmed its commitment to ethical conduct and fairness to consumers, while applauding the industry’s ability to settle large claims.
“The payment of four major claims in recent months demonstrates the sector’s capacity and credibility,” Nwachukwu added.
With over 40 million small and medium-sized businesses still lacking proper insurance cover, and healthcare coverage dominated by HMOs, both SEC and NAICOM urged insurers to expand into underserved markets and prepare for long-term transformation.
“This is not just about raising capital. It is about transforming the insurance industry into a trusted pillar of Nigeria’s financial system,” Nwachukwu concluded.
