NAICOM Insists Recapitalisation Deadline Stands, Rules Out Extension

NAICOM Insists Recapitalisation Deadline Stands, Rules Out Extension

Reported by Sele Media Africa|Ihuoma Amarachi

ABUJA, NIGERIA —The National Insurance Commission (NAICOM) has reaffirmed that the recapitalisation deadline set for insurance and reinsurance firms in Nigeria remains unchanged, ruling out any possibility of an extension. The Commission stated clearly that the deadline is backed by law and that all firms are expected to comply or face regulatory consequences.This declaration was made by NAICOM’s Commissioner for Insurance, Mr. Sunday Thomas , during a media briefing, where he stressed that compliance with the recapitalisation policy is non-negotiable. He noted that the exercise is aimed at strengthening the financial capacity of insurance firms, enabling them to take on bigger risks, enhance claims payment, and boost public confidence in the insurance sector.

The recapitalisation policy, which had previously faced delays due to COVID-19 and industry lobbying, now has a final deadline, with no further shifts. Under the policy, life insurance firms must raise their capital base from N2 billion to N8 billion, while general business firms must move from N3 billion to N10 billion. Composite insurers are to recapitalise to N18 billion, and reinsurance firms to N20 billion. NAICOM reiterated that only companies meeting the new capital requirements by the deadline would be allowed to continue operations, while non-compliant firms risk losing their licenses or facing mergers, acquisitions, or closures.

Citations:

1. The Guardian Nigeria – “Recapitalisation deadline stands, says NAICOM” — [guardian.ng](https://guardian.ng/business-services/recapitalisation-deadline-stands-says-naicom/) 2. Nairametrics – “NAICOM rules out recapitalisation extension” — [nairametrics.com](https://nairametrics.com/2023/12/28/naicom-rules-out-recapitalisation-extension/) 3. ThisDayLive – “NAICOM insists on deadline for insurance recapitalisation” — [thisdaylive.com](https://www.thisdaylive.com/index.php/2023/12/28/naicom-insists-on-deadline-for-insurance-recapitalisation)

About The Author

Ihuoma Amarachi Grace

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Ihuoma Amarachi Grace is a journalist with Sele Media Africa, committed to telling authentic African stories with depth and creativity. A Christian and a student of English and Literary Studies, she blends her love for writing with the art of spoken word to inspire and inform. Her voice adds a thoughtful and artistic dimension to Sele Media’s mission of amplifying unheard voices across the continent.

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