Over 70% of Nigerian insurance firms have completed independent verification ahead of the July 31, 2026, recapitalisation deadline set by the National Insurance Commission (NAICOM). This update comes as the industry adapts to the Nigerian Insurance Industry Reform Act, 2025, which mandates significantly higher capital thresholds. Notably, Linkage Assurance Plc has successfully met its requirements, completing a 16.2 billion Naira Rights Issue that was fully subscribed. The regulator has confirmed that the deadline is final and expects the reform to drive industry consolidation through mergers and acquisitions.

With the July 31 recapitalization deadline fast approaching, Nigeria’s insurance sector is in a final push to conclude capital verification. Regulators are working alongside major audit firms to validate funds raised by insurers as they transition toward new minimum capital requirements under the Nigerian Insurance Industry Reform Act. While nearly 50 of the 58 industry operators have completed verification, the remaining firms face potential mergers or regulatory intervention if they fail to meet the thresholds. Since the exercise began, insurers have collectively raised nearly N300 billion, with the regulator and market participants noting strong investor appetite for the sector’s long-term growth prospects.

Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has stated that the regulator will maintain heightened supervision of the banking sector despite the successful conclusion of the recent recapitalisation exercise.

Speaking at the BusinessDay 14th Annual CEO Forum, Cardoso noted that while the industry raised between N4 trillion and N5 trillion in fresh capital to build resilience against economic shocks, continuous oversight remains essential. He emphasized that the stronger capital base is intended to support eventual increased lending to the private sector once inflation and interest rates moderate. Cardoso also warned banks against indiscriminate lending, urging them to prioritize sophisticated risk management and proper analysis, especially when navigating complex sectors like oil and gas. The CBN plans to collaborate with financial institutions to enhance their internal risk assessment capabilities.