Insurance stakeholders back NAICOM over NIIRA 2025 implementation

Stakeholders in Nigeria’s insurance sector have described the conclusion of the 12-month recapitalisation exercise as a major step towards building a stronger and more resilient industry.

The stakeholders, under the aegis of the Parliamentary Support Network (PSN), also backed the Commissioner for Insurance, Mr Olusegun Ayo Omosehin, over the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, saying the insurance sector is witnessing a positive revolution under the new law.

In a statement signed by Amb. Muhammad Abdulrazaq and Comr. Adams Umoren, the stakeholders said NIIRA 2025, signed by President Bola Tinubu, had moved from legislation to implementation through recapitalisation, stronger policyholder protection and renewed enforcement of compulsory insurance.

They noted that NIIRA 2025 repealed and consolidated earlier insurance laws and introduced stronger provisions on capital, risk-based supervision, corporate governance, consumer protection and regulatory enforcement.

“NIIRA provides a unified legal framework while giving the regulator greater capacity to respond to emerging risks. It also provides for stronger protection of policyholders, including the establishment of the Insurance Policyholders Protection Fund,” the statement said.

The stakeholders added that the National Insurance Commission’s (NAICOM) August 2026 announcement that the 12-month recapitalisation exercise had been completed was a major step towards building a stronger and more resilient industry.

They also highlighted the commencement of the Insurance Policyholders Protection Fund and the October 2025 inauguration of a joint committee with the Federal Road Safety Corps to enforce compulsory third-party motor insurance.

“Since the commencement of NIIRA, there have been visible steps towards putting its provisions into effect. NAICOM announced in August 2026 that the 12-month exercise had been successfully completed, a major step towards building a stronger, more resilient and adequately capitalised insurance industry.

“These developments indicate that NIIRA is moving from legislation to implementation,” they added.

However, the stakeholders acknowledged that the new capital requirements place heavy demands on operators and that disagreements over fees, compliance and interpretation are inevitable.

Insisting that no company should be above regulation and no regulator above scrutiny, they said disputes should be settled through evidence, due process and institutional accountability.

They also expressed concern over the cases of NICON Insurance Plc and Nigeria Reinsurance Corporation, both under liquidation after failing to meet minimum capital requirements, and over their petition to the Economic and Financial Crimes Commission (EFCC), alleging irregularities in the recapitalisation process.

NAICOM had rejected the claims and said supplying information requested by the EFCC did not amount to an indictment.

Speaking on the development, the stakeholders said:

“No company should be above regulation. At the same time, no regulator should be above scrutiny. The appropriate response to disagreement is evidence, due process and institutional accountability.

“We believe the allegations should be subjected to proper investigation and due process rather than trial by media. However, petitions to law-enforcement agencies must not become a mechanism for frustrating the implementation of a law duly enacted by the National Assembly and assented to by the President.”

The stakeholders, in the same vein, urged all insurance sector operators to comply with NIIRA 2025.

They also called on NAICOM to continue applying the law transparently and without discrimination, and asked the EFCC to independently examine any properly lodged allegations.

According to them, policyholder protection must remain central, stressing that the industry cannot return to the practices the Act was enacted to end.