Nigerian insurance sector capital reaches N1.079 trillion

The National Insurance Commission (NAICOM) has announced that a recent recapitalisation exercise has increased the total capital of the Nigerian insurance industry to N1.079 trillion. Olusegun Omosehin, the Commissioner for Insurance and CEO of NAICOM, stated that 48 insurance companies and two reinsurance entities successfully met the new capital thresholds and have been re-licensed.

Omosehin emphasized that the objective of the exercise was to encourage fund raising, mergers, and partnerships rather than eliminating market operators. He described the process as transparent, involving multiple stages of assessment and independent verification to protect the interests of policyholders and investors.

Additionally, NAICOM clarified that the Nigerian Agricultural Insurance Corporation (NAIC) will maintain its specialized mandate to underwrite agricultural insurance schemes despite the withdrawal of its general insurance licence. While NAIC is no longer permitted to underwrite other classes of insurance, its statutory role in agricultural coverage remains secure under federal legislation. Omosehin noted that the withdrawal of the general licence would not create coverage gaps, as other licensed commercial insurers possess the capacity to provide those services.