The Securities and Exchange Commission (SEC) has launched a specialized desk aimed at expediting approvals for insurance sector recapitalization, promising to make decisions within 14 days of receiving complete submissions.
This announcement was made during the conclusion of the 19th Insurersโ Committee meeting, as shared by Ebelechukwu Nwachukwu, the Head of the Communication and Stakeholders Management Sub-Committee, in Lagos.
Recently, President Bola Tinubu enacted the Nigerian Insurance Industry Reform Act 2025, which encompasses a comprehensive set of reforms, including a significant increase in the minimum capital requirements for insurance firms.
Nwachukwu noted that Dr. Emomotimi Agama, the SEC’s Director-General, presented at the meeting, indicating that the concessions granted to the insurance sector are part of a collaborative effort between capital market and insurance regulators to revitalize the industry.
โThere is no better ally for the capital market than the insurance sector,โ she remarked. โThis collaboration between NAICOM and SEC is unprecedented and notably robust. The Director-General expressed confidence in the industry and his commitment to facilitating the recapitalization process.โ
She further explained, โA dedicated desk has been established for insurance companies, ensuring that all approvals promised by the SEC will be issued within 14 days, provided that we submit our capital-raising applications along with all necessary documentation promptly.โ
Nwachukwu revealed that the SEC has introduced approximately nine concessions and reduced fees associated with the recapitalization process for the insurance sector. Agama highlighted that Nigerian investors are actively seeking new investment opportunities, referencing over N3 trillion recently raised for the banking sector, and encouraged insurers to prepare themselves to attract similar investments.
The Commissioner for Insurance, Olusegun Omosehin, reminded industry stakeholders that the recapitalization mandated by the newly enacted NIIRA Act should not be viewed merely as a fundraising initiative, but rather as a chance to restructure, enhance governance, and rebuild public trust in the industry.
The regulator has already circulated draft guidelines on minimum capital requirements, InsurTech, and Takaful operations for industry feedback, with final guidelines anticipated shortly. Additionally, a Policyholdersโ Protection Fund will be established, managed by an independent audit firm.
Nwachukwu stated, โNAICOM has released a draft of the minimum capital requirement guidelines, which insurance companies are expected to review. Feedback has been submitted and will be considered before the final guidelines are published by NAICOM promptly. Guidelines for InsurTech and Takaful have also been issued to guide the industry through these processes.โ
She added that NAICOM encourages organizations to start submitting their recapitalization plans, emphasizing the importance of detailing not just the plans for capital raising but also how the generated funds will be utilized prior to approval.
Nwachukwu noted that NAICOM remains committed to ethical practices and consumer fairness, praising the industry for its timely claims settlements. โThe industry has processed several substantial claims, all of which have been paid, demonstrating our capability,โ she asserted. With over 40 million small and medium enterprises underserved and health insurance predominantly managed by HMOs, both regulators urged insurers to explore growth opportunities while refining their recapitalization strategies.
โThis initiative transcends mere capital raising; it aims to transform the insurance sector into a dependable foundation of Nigeriaโs financial system,โ Nwachukwu emphasized.
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