The Securities and Exchange Commission (SEC) has announced the creation of a dedicated fast-track approval desk to support the recapitalisation of insurance companies, promising to process applications within 14 days of receiving complete documentation.
This was disclosed at the conclusion of the 19th Insurers’ Committee meeting held in Lagos, as revealed by Ebelechukwu Nwachukwu, Head of the Communication and Stakeholders Management Sub-Committee of the committee.
The development comes on the heels of the recently signed Nigerian Insurance Industry Reform Act (NIIRA) 2025 by President Bola Ahmed Tinubu, which introduced sweeping reforms, including a significant hike in minimum capital requirements for players in the insurance space.
According to Nwachukwu, the move by SEC is part of a broader collaboration with the National Insurance Commission (NAICOM) to support a smooth and transparent recapitalisation process. She disclosed that Emomotimi Agama, Director-General of the SEC, made a presentation at the meeting, highlighting the commission’s commitment to the insurance sector.
“There can be no stronger ally to the capital market than the insurance industry,” Nwachukwu quoted the SEC DG as saying. “This is the first time such a robust collaboration between NAICOM and SEC is happening, and it signals a strong intent to transform the sector.”
SEC Offers Concessions and Lower Fees
In a show of support, the SEC has also granted nine key concessions, including a reduction in regulatory fees associated with capital raising. Dr. Agama emphasized that with over ₦3 trillion recently mobilised for the banking sector, there is a clear appetite among Nigerian investors—insurers must now position themselves strategically to tap into these funds.
The 14-day approval timeline, however, is contingent upon insurance firms submitting their recapitalisation applications with all required documentation in order.
Recapitalisation as a Strategic Opportunity — Not Just Fundraising
Also speaking at the event, Commissioner for Insurance, Olusegun Omosehin, reminded industry stakeholders that recapitalisation should be viewed not just as a capital-raising obligation, but as a strategic opportunity to restructure their operations, enhance governance frameworks, and rebuild public confidence in the industry.
NAICOM has already released draft guidelines covering new capital requirements, InsurTech innovation, and Takaful (Islamic insurance) operations, inviting industry input before the final regulations are issued. The commission is also set to establish a Policyholders’ Protection Fund, to be managed by an independent audit firm, aimed at safeguarding consumer interests.
Nwachukwu added that NAICOM is encouraging insurance companies to submit their recapitalisation plans early, including detailed strategies on how the raised capital will be utilised.
“It’s not enough to say how we plan to raise capital regulators want to see how we intend to apply those funds to build stronger, more consumer-focused businesses,” she noted.
Payout of Major Claims Signals Industry Strength
In a bid to reinforce public trust, NAICOM also commended insurers for successfully settling four major claims in recent months, a development seen as a positive indicator of the industry’s growing financial resilience and capacity to deliver on obligations.
With over 40 million small and medium enterprises (SMEs) still underinsured and health coverage dominated by HMOs, regulators are urging insurers to expand into underserved sectors, improve product innovation, and prepare for a broader transformation of the industry.
“This isn’t just about meeting capital thresholds,” Nwachukwu concluded. “It’s about turning the insurance industry into a key pillar of Nigeria’s financial ecosystem.”
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