The Good Governance Assembly (GGA) has expressed support for the leadership of the National Insurance Commission (NAICOM) under Commissioner for Insurance, Olusegun Ayo Omosehin. The group urged industry stakeholders to support ongoing reforms in Nigeria's insurance sector. According to GGA, the recent recapitalisation exercise and other regulatory measures undertaken by NAICOM aim to strengthen insurance companies and improve the industry's capacity to meet its obligations.
The GGA Chairman, Charles Onoja, stated that the organisation has reviewed recent developments at NAICOM and believes the direction of the reforms deserves support. Onoja commended Omosehin for repositioning the insurance industry and strengthening regulatory standards. The recent recapitalisation exercise, which was conducted under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, demonstrates NAICOM's focus on building a stronger and more sustainable insurance sector.
Nigeria's insurance industry recently completed a 12-month recapitalisation exercise, which resulted in 48 insurance companies and two reinsurance companies meeting the new minimum capital requirements. NAICOM announced that the exercise had been completed in August, with a total capital of ₦1.079 trillion. Some operators raised funds through rights issues, private placements, public offers, and fresh equity injections.
The GGA linked the commission's reforms to the Federal Government's economic programme under President Bola Tinubu's administration. Onoja stated that strong regulatory institutions and a more stable insurance industry could contribute to improving the environment for businesses and investors. The Renewed Hope Agenda requires strong institutions, responsible regulation, and an environment in which businesses can grow and investors can have confidence.
The GGA urged insurance companies and other stakeholders with concerns about regulatory decisions to engage NAICOM through appropriate institutional channels. According to the organisation, disagreements over individual decisions should not undermine confidence in the wider regulatory process. This call comes against the backdrop of disputes involving some operators affected by regulatory action.
NAICOM is moving towards a risk-based capital framework, which is intended to align capital requirements more closely with the risks undertaken by individual insurance companies. In June, the commission appointed professional services firm Ernst & Young as consulting actuary for the implementation of the framework. The regulator also began issuing new licence certificates to companies that met the revised minimum capital requirements in August.
The GGA will continue to follow developments in the insurance industry and support measures it considers consistent with transparency, accountability, and sustainable growth. Onoja commended Omosehin for providing leadership at NAICOM and stated that Nigeria needs regulators who are prepared to take difficult decisions in the national interest. The insurance industry is an important pillar of the economy, and every effort to strengthen it should receive constructive support.
Key points
- The Good Governance Assembly supports NAICOM's reforms under Commissioner Olusegun Ayo Omosehin.
- The recent recapitalisation exercise resulted in a total capital of ₦1.079 trillion.
- NAICOM is moving towards a risk-based capital framework to align capital requirements with risks undertaken by individual insurance companies.
