Nigerian insurance shareholders demand higher returns after recapitalisation

Following a recent recapitalisation exercise in the Nigerian insurance sector, shareholder associations are demanding improved dividends, stronger corporate governance, and enhanced regulatory supervision. Fifty insurance and reinsurance companies have successfully met the new minimum capital requirements.

The new capital thresholds are set at N10 billion for life insurers, N15 billion for non-life insurers, N25 billion for composite insurers, and N35 billion for reinsurers.

Moses Igbrude, National Coordinator of the Independent Shareholders Association of Nigeria (ISAN), emphasized that the increased capital should be used to expand underwriting capacity and develop new products to drive insurance penetration beyond its current level of one per cent. Shareholders expressed that the fresh capital must translate into stronger business performance and meaningful returns, signaling an end to the era of minimal dividends.