by Niyi Jacobs
The National Insurance Commission (NAICOM) has issued new licences to additional insurance companies that have been confirmed and verified as having met the minimum capital requirements under the Nigerian Insurance Industry Reform Agenda (NIIRA 2025).
The development represents another major step in the Federal Government’s efforts to strengthen Nigeria’s insurance industry, improve financial stability and restore greater confidence in the sector.
NAICOM said the newly licensed companies successfully passed the required verification process and demonstrated compliance with the minimum capital thresholds prescribed under the reform agenda.
Speaking on the development, the Commissioner for Insurance (CFI) urged the newly licensed companies to deploy their capital prudently and effectively to support sustainable business growth and strengthen protection for policyholders.
The Commissioner stressed that having adequate capital should translate into stronger capacity to meet legitimate claims and other obligations to customers.
He also challenged the companies to distance themselves from unethical practices that have undermined confidence in the insurance industry in the past.
According to him, the new era requires insurance operators to embrace the highest standards of corporate governance, transparency and accountability.
The Commissioner maintained that improved capitalisation alone would not be sufficient to transform the industry unless operators also demonstrate professionalism and responsible management.
He therefore called on the companies to ensure that their operations reflect the confidence placed in them by regulators, investors, policyholders and other stakeholders.
The latest licensing exercise is part of the broader implementation of NIIRA 2025, which seeks to reposition Nigeria’s insurance sector and strengthen the financial capacity of operators.
The recapitalisation exercise is expected to enable insurance companies to undertake larger risks, improve their capacity to pay claims and contribute more meaningfully to the Nigerian economy.
NAICOM further emphasised that building a resilient insurance industry requires cooperation among regulators, insurers, brokers, policyholders and other stakeholders.
The Commissioner called for collective efforts to establish a sector that is financially sound, professionally managed and capable of consistently fulfilling its obligations.
He said the ultimate objective should be to build an insurance industry that keeps its promises, protects policyholders and earns the trust of Nigerians.
The Commission’s latest action signals its continued enforcement of the minimum capital requirements while encouraging operators that meet the standards to contribute to the development of a stronger and more credible insurance market.
With additional companies now licensed, NAICOM expects the industry to translate improved capital strength into better services, stronger consumer protection and increased confidence in insurance as a tool for managing financial risks.
