The National Association of Nigerian Students (NANS) has expressed support for the recent recapitalisation of Nigeria's insurance industry, describing it as a critical reform for strengthening insurers' capacity, protecting policyholders, and supporting the country's economic growth ambitions. NANS president, Akinteye Babatunde Afeez, stated that the higher capital requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 would provide a foundation for a stronger and more resilient insurance industry. This industry is capable of supporting larger investments, infrastructure, and businesses.
Afeez commended the Federal Government under President Bola Ahmed Tinubu for initiating reforms aimed at strengthening the economy and positioning Nigeria for sustainable growth. He also praised the National Insurance Commission (NAICOM), led by Commissioner for Insurance Olusegun Ayo Omosehin, for implementing the industry reforms. According to Afeez, recapitalisation should not be viewed merely as a regulatory compliance exercise but as an intervention designed to address longstanding capacity constraints in the insurance market.
For decades, insufficient capital limited the capacity of many insurance operators to meet growing market demands and support large-scale economic activities. The recapitalisation exercise was therefore not merely a regulatory requirement but a strategic intervention designed to strengthen insurers and ensure prompt settlement of legitimate claims. NANS' endorsement comes after the conclusion of the recapitalisation exercise, which required insurers to raise fresh capital to meet new minimum capital requirements under NIIRA 2025.
A stronger capital base would enable insurers to take on larger risks, support business continuity, and improve their ability to absorb losses, while creating greater confidence among policyholders and investors. Afeez said no modern economy could function effectively without an insurance industry with the financial capacity to protect investments and absorb risks. A vibrant insurance industry is capable of protecting investments, facilitating business continuity, absorbing risks, supporting infrastructure development, and promoting financial confidence across all sectors.
The NANS president highlighted the potential benefits of the insurance reforms for young Nigerians, particularly through financial inclusion, employment, entrepreneurship, and professional development. He said the new regulatory framework could help create opportunities for students and graduates in a sector whose contribution to the Nigerian economy remains below its potential. Beyond recapitalisation, NANS commended NAICOM for its focus on consumer protection and claims settlement.
Afeez welcomed the Insurance Policyholders Protection Fund established under NIIRA 2025, describing it as an important mechanism for protecting policyholders against losses arising from circumstances beyond their control. NANS urged NAICOM to deepen public awareness of the new protections available to policyholders, arguing that regulatory reforms would have greater impact if consumers understood their rights and the safeguards available to them.
The students' body also drew attention to NAICOM's investments in tertiary education through the Insurance Education Fund and related initiatives. Afeez said NANS would continue to support insurance awareness and financial literacy among students, promote insurance as a career option for young Nigerians, and encourage greater participation in youth-focused insurance programmes. The ultimate test of the reforms will be their ability to translate stronger capital and regulation into greater underwriting capacity, improved claims experience, wider insurance penetration, and tangible economic opportunities.
Key points
- The National Association of Nigerian Students supports the insurance industry recapitalisation.
- Recapitalisation will provide a foundation for a stronger and more resilient insurance industry.
- The reforms will have greater impact if consumers understand their rights and the safeguards available to them.
