The Centre for Credible Reforms and Institutional Accountability (CCRIA) has expressed support for reforms being implemented by the National Insurance Commission (NAICOM). The CCRIA urged the regulator to sustain transparency, policyholder protection, and consistent implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025. President of the centre, Dr. Aminu Abubakar Aminu, made the call in a statement, commending the Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Ayo Omosehin.
President Bola Tinubu signed NIIRA 2025 into law last year, replacing and consolidating several pieces of legislation governing Nigeria's insurance industry. The legislation strengthened the regulatory framework, introduced revised minimum capital requirements, and provided measures aimed at protecting policyholders and improving financial stability in the sector. Aminu said the new insurance legislation provided an opportunity to address longstanding regulatory and structural challenges in the industry.
The CCRIA commended Omosehin's leadership of NAICOM and called for continued engagement between the regulator and industry operators as implementation of the legislation progresses. Aminu considered the appointment of Omosehin as Commissioner for Insurance and Chief Executive Officer of NAICOM a timely and appropriate decision. He is a seasoned insurance professional with many years of experience in the industry, and his understanding of the sector gives him the practical knowledge required to lead an important reform process of this nature.
One of the most consequential elements of the reforms has been the recapitalisation of insurance and reinsurance companies. Under NIIRA 2025, minimum capital requirements were increased to ₦10 billion for life insurance companies, ₦15 billion for non-life insurers, and ₦35 billion for reinsurance companies. NAICOM announced in August that the 12-month recapitalisation exercise had been completed, with 43 insurance and reinsurance companies meeting the prescribed minimum capital requirements at the time of the announcement.
Aminu said the reforms should now be sustained through consistent implementation. The early developments under NIIRA demonstrate that the reform is not merely a legislative exercise but a process capable of producing measurable improvements in the industry. Stronger capital requirements, improved supervision, and greater attention to policyholder protection will ultimately create an insurance market that Nigerians can trust.
The centre said greater protection for policyholders should remain central to the reform programme, arguing that public confidence would be important to efforts to deepen insurance penetration in Nigeria. NIIRA identifies protection of policyholders, prospective policyholders, and other stakeholders as one of the objectives of the regulatory framework. The legislation has also provided for mechanisms, including the Insurance Policyholders Protection Fund, designed to provide protection in circumstances involving distressed or insolvent insurers.
The CCRIA president urged NAICOM to maintain engagement with stakeholders and ensure that regulatory requirements are implemented consistently. What is required at this stage is continuity, professionalism, and commitment to the objectives of the law. The reforms must be sustained beyond the initial implementation period so that the gains can become permanent features of the industry. Effective implementation of NIIRA could improve consumer confidence and strengthen the industry's contribution to economic activity.
Key points
- The Centre for Credible Reforms and Institutional Accountability supports NAICOM's insurance reforms.
- The reforms aim to strengthen the regulatory framework and improve policyholder protection.
- Sustained implementation and transparency are crucial to the success of the reforms.
