The Securities and Exchange Commission has created a dedicated desk to fast-track approvals for insurance sector recapitalisation, pledging to deliver decisions within 14 days of complete submissions.
This was disclosed at the end of the 19th Insurers’ Committee meeting by the Head of the Communication and Stakeholders Management Sub-Committee of the Insurers’ Committee, Ebelechukwu Nwachukwu, in Lagos.
President Bola Tinubu recently signed into law the Nigerian Insurance Industry Reform Act 2025, and it included a wide range of reforms, including a substantial increase in minimum capital requirements for insurance companies.
Nwachukwu disclosed that the Director-General of the SEC, Dr Emomotimi Agama, made a presentation to the meeting, noting that the concessions being made to the insurance industry were part of the collaboration between the capital market and insurance regulators aimed at transforming the sector.
“There cannot be a better ally to the capital market than the insurance industry,” she said. “He also acknowledged that this is the first time that the collaboration between NAICOM and SEC is happening, and it’s happening in a very strong manner. And he expressed his belief in the industry and his actions to support the recapitalisation process.
“The key thing is, they’ve set up a dedicated desk for insurance companies, and all approvals that the SEC has committed to us are to be granted within 14 days, so long as we submit our applications to raise capital with all the required documents on time,” she added.
According to Nwachukwu, the SEC has given about nine concessions and reduced fees for the insurance sector’s recapitalisation process. Agama was said to have stressed that Nigerian investors were actively seeking new outlets, citing over N3tn raised recently for the banking sector, and urged insurers to position themselves to attract similar inflows.
The Commissioner for Insurance, Olusegun Omosehin, was said to have reminded the industry that recapitalisation under the newly enacted NIIRA Act should not be seen as a mere fund-raising exercise but as an opportunity to restructure, strengthen governance, and rebuild public confidence in the industry.
The regulator has already released draft guidelines on minimum capital requirements, InsurTech, and Takaful operations for industry input. Final guidelines are expected soon, alongside the establishment of a Policyholders’ Protection Fund, which will be managed by an independent audit firm.
Nwachukwu said, “NAICOM has released a draft of minimum capital requirement guidelines, which they require the insurance companies to comment on, and the comments have been sent. These comments will be considered, and the final guidelines will be released by NAICOM as soon as possible. They’ve also issued guidelines on insurtech and issued guidelines on Takaful, basically to just guide the industry in these processes.
“NAICOM also encouraged organisations to begin sending the recapitalisation plans. So, they don’t only want to see the plans of how we plan to recapitalise, but they also want to see how we plan to utilise the funds that we generate before they will approve it.”
She added that NAICOM has pledged to continue to focus on ethical practices and fairness to consumers. The NAICOM boss commended the industry on the major claims paid.
“You know, the industry has had about four massive claims, and all these claims have been paid. He said the payment of this claim has shown our capacity,” she averred. With more than 40 million small and medium enterprises underserved, and health insurance still largely ceded to HMOs, both regulators urged insurers to expand into growth areas while preparing their recapitalisation plans.
“This is not just about raising capital. It is about transforming the insurance industry into a trusted pillar of Nigeria’s financial system,” Nwachukwu emphasised.
