Economy

NAICOM: No going back on 2026 recapitalisation deadline

Published

7 months ago

December 31, 2025

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The National Insurance Commission (NAICOM) has ruled out any possibility of extending the recapitalisation deadline for operators in the Nigerian insurance industry.

The insurance regulator is insisting that the timeline is rooted in law and cannot be shifted without a fresh legislative process.

The Deputy Commissioner for Insurance (Technical), Dr. Usman Jankara, who represented the Commissioner for Insurance and Chief Executive of NAICOM, Mr. Olusegun Omosehin, disclosed this during a seminar for reporters on the NIIRA 2025 framework in Abuja.

According to Dr. Jankara, the deadline is a statutory provision and not an administrative target that can be adjusted at will.

He stated that any attempt to alter the date would require going back to the National Assembly, securing an amendment to the Act, and obtaining presidential assent.

He said: “NAICOM does not intend to pursue extension. The deadline date is 30 July 2026.”

He explained that the Commission is confident that serious industry players will meet the statutory capital thresholds within the stipulated timeframe, adding that NAICOM expects a stronger, better-governed and more financially robust insurance sector after the recapitalisation exercise is concluded.

The minimum capital requirement now stands at N15 billion for non-life insurers, N10 billion for life insurance companies and N35 billion for reinsurance firms. Dr. Jankara described these figures as the basic operating benchmarks that every insurance entity must meet in order to operate in the market.

He noted that the new capital regime became necessary because inflation and the sharp depreciation of the naira had weakened the real value of the previous capital thresholds.

Jankara recalled that capital bases of N2 billion to N5 billion that appeared substantial during the last recapitalisation exercise are now comparatively insignificant in dollar terms.

He explained that the new capital programme is aimed at strengthening market stability, phasing out weak and marginal operators, encouraging mergers where necessary, and improving the ability of insurers to meet policyholder obligations.

“What we are going to see after this exercise are stronger, better-capitalised and more reliable insurers,” he said.

Providing an update on implementation, Dr. Jankara stated that the recapitalisation programme is already in full motion. An in-house recapitalisation committee has been set up within the Commission, guidelines on the new capital requirements have been issued, and companies are required to submit recapitalisation plans to NAICOM. He added that operators are also expected to provide monthly updates on the progress of these plans.

He explained that the current stage of the exercise is verification of claims by companies that assert they have met the new capital thresholds.

To ensure credibility and transparency, NAICOM has engaged the Big Four global auditing firms — KPMG, Deloitte, EY and PwC — to serve as external verifiers.

These firms are visiting companies, reviewing assets and investments, and authenticating capital positions, after which NAICOM carries out a secondary validation of their reports.

He stressed that, as of now, no company has been officially confirmed compliant. “Whether you are big or small, every operator must pass through the same compliance scanner,” he said.

Dr. Jankara also spoke extensively on the Insurance Policyholders Protection Fund (IPPF), which he described as a safety net created to protect policyholders in the event of the insolvency of an insurance company.

He said the fund operates in a similar manner to the Nigeria Deposit Insurance Corporation (NDIC) in the banking sector, but with broader coverage, because it can intervene even when a company is still operating but in financial distress — thereby performing a dual function comparable to both NDIC and AMCON.

Jankara explained that any financial support granted to troubled insurers from the fund will be treated as a loan that must be repaid, while claims settled through the fund may be recovered from the liquidation proceeds of failed companies. “The fund is self-funding, has a governance committee, and has a sustainability mechanism,” he said.

On funding, he stated that insurance companies will contribute 0.25 per cent of their gross premium income annually to the fund, and contributions will accumulate over time.

Once the fund reaches 25 per cent of the industry’s gross premium, further contributions will be suspended until growth in industry premium resumes. He added that, where insolvency pressures exceed available funds, NAICOM is empowered to request additional contributions from insurers.

He stressed that the fund belongs to the industry and is not a NAICOM-controlled pool, noting that NAICOM is only a member of the management committee.

According to him, operators have largely accepted the levy because of its stabilising role and its capacity to restore confidence among policyholders.

He said the introduction of the fund is expected to address long-standing public mistrust arising from past instances where failed companies could not meet their obligations, thereby damaging the image of the sector.

“This mechanism will improve trust in insurance participation and give Nigerians greater assurance that their interests will be protected,” he stated.

On claims settlement obligations under NIIRA, Dr. Jankara explained that Section 210 of the Act provides clear penalties for failure or undue delay in the payment of legitimate claims.

These include fines payable to the regulator and the application of compound interest on delayed claims, calculated monthly at prevailing bank rates, on the outstanding amount due to policyholders.

He said this provision is designed to discourage unnecessary delays and to compel operators to treat claims settlement as a core responsibility.

The NAICOM executive also addressed the new sanctions regime for regulatory infractions, noting that the former Insurance Act prescribed fixed penalties that did not reflect the magnitude or financial gains associated with certain breaches.

The NIIRA framework, he said, introduces a more flexible and proportionate system that allows NAICOM to impose sanctions based on the severity of an infraction.

He explained that the Commission now applies the principle of disgorgement, which ensures that any financial benefit obtained through non-compliance is fully recovered, in addition to the imposition of further penalties to deter recurrence.

Jankara added that penalties affecting members of the public are expressly stated in the law, while those relating to regulated entities are determined in line with risk exposure and the gravity of the offence.

The Deputy Commissioner for Insurance expressed confidence that the recapitalisation drive and the protection mechanisms under NIIRA will collectively produce a stronger insurance sector that is better positioned to meet obligations, expand coverage and rebuild public trust in the Nigerian insurance industry.

Economy

Cardoso, Okonjo-Iweala to lead Africa emerging markets forum

Published

18 hours ago

July 27, 2026

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The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, and the Director-General of the World Trade Organisation (WTO), Dr Ngozi Okonjo-Iweala, will headline the 7th Africa Emerging Markets Forum scheduled to hold in Abuja on July 29 and 30, 2026.

The two global economic leaders are expected to feature in a high-level fireside dialogue that will focus on how African economies can navigate growing global uncertainties, sustain reform efforts, deepen regional integration and unlock long-term growth opportunities.

Hosted by the Central Bank of Nigeria in partnership with the Emerging Markets Forum (EMF) and the Centre for the Study of the Economies of Africa (CSEA), the forum will bring together senior policymakers, central bankers, ministers, economists, development partners and private-sector leaders from across Africa and beyond.

The event, which will take place at the CBN Headquarters in Abuja, is themed “Building Resilience Amidst Geoeconomic Uncertainties.”

Organisers said discussions will centre on practical policy responses to an increasingly fragmented and unpredictable global economic landscape.

The forum will also feature keynote addresses from the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and the Minister of Science, Technology and Innovation, Dr Kingsley Udeh, highlighting the role of coordinated fiscal, monetary and innovation policies in driving Africa’s economic transformation.

Other notable participants expected at the gathering include Indermit Gill, Chief Economist and Senior Vice President for Development Economics at the World Bank Group; Harinder Kohli, Founding Director and Chief Executive of the Emerging Markets Forum; and Professor Adamu Ahmed, Vice-Chancellor of Ahmadu Bello University.

Over the two-day event, participants will examine issues shaping the future of emerging economies, including macroeconomic stability, regional integration, cross-border payments, financial technology, infrastructure development, foreign direct investment, technology transfer and artificial intelligence.

Deliberations will also focus on food price volatility, inflation management and the effectiveness of monetary policy transmission in fragile and post-crisis economies.

According to the organisers, the forum is designed to encourage open dialogue on strategic economic challenges facing emerging markets while identifying practical and adaptable policy solutions.

They noted that the event reflects the commitment of the Central Bank of Nigeria and its partners to strengthening regional cooperation, promoting evidence-based policymaking and advancing innovative approaches that support sustainable and inclusive economic growth across Africa.

Economy

Again, NNPCL Increases Fuel Price For Second Time In Two Days

Published

5 days ago

July 23, 2026

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The Nigerian National Petroleum Company Limited, NNPCL, has increased the pump price of Premium Motor Spirit, PMS at its retail outlets for the second time in less than two days.

A market survey by DAILY POST showed that NNPCL raised its petrol price to N1,335 per litre on Wednesday from N1,270 per litre on Tuesday.

This means that the state-owned filling station increased its fuel price by N65 per litre.

The new price has been implemented at NNPCL filling stations in Wuse Zone 6 (Berger), Zone 4, and other outlets in Abuja and its environs.

Recall that on Tuesday, NNPCL increased its petrol pump price by N115 per litre to N1,270 per litre.

The latest increase comes amid continued petrol price volatility in the country’s downstream oil sector following Dangote Refinery’s resumption of the sale of refined petroleum products in U.S. dollars.

DAILY POST reports that crude oil prices rose by nearly 4 percent on Wednesday as airstrikes intensified in the Middle East.

Economy

Old telecom rules can’t handle AI, digital era, says NCC

Published

6 days ago

July 22, 2026

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The Nigerian Communications Commission has said Africa’s telecommunications regulators must overhaul traditional regulatory approaches to keep pace with rapid technological changes, warning that existing frameworks were no longer adequate for an industry increasingly driven by artificial intelligence, satellite services, cloud computing and digital public infrastructure.

The Executive Commissioner for Stakeholder Management at the NCC, Rimini Makama, stated this on Tuesday in Abuja during the Head of Regulators Roundtable held on the sidelines of the ongoing 7th Ordinary Session of the Conference Preparatory Committee of the African Telecommunications Union.

Makama said the telecommunications landscape had become significantly more complex, requiring regulators to rely on data and market intelligence rather than conventional regulatory methods.

“Our discussion today turns on one question that matters to every regulator in this room. How do we use data and evidence to make decisions that are smarter, more transparent, and more focused on our consumer? Our markets are no longer simple,” she said.

She added, “Broadband is expanding, satellite services are arriving, AI, cloud computing, and digital public infrastructure are reshaping our sector. The old regulatory approaches were built for a simpler time. They are no longer enough.”

According to her, regulators across Africa now possess unprecedented volumes of technical, market and consumer data, but the real challenge lies in converting that information into better regulatory decisions.

“To stay ahead of the problem and not just react to it, we need trusted intelligence,” Makama said.

She explained that because African digital markets were becoming increasingly interconnected, regulators faced similar responsibilities in protecting consumers, promoting competition, attracting investment and strengthening network resilience.

“The challenge is not collecting it. The challenge is turning it into better decisions,” she said.

Makama said the NCC had developed a regulatory intelligence ecosystem that integrates multiple data sources, including quality of service and quality of experience indicators, consumer complaints, compliance analytics and market intelligence to support evidence-based policymaking.

“It brings several data sources into one place, so that our decisions rest on evidence, quality of service, and quality of experience data, consumer complaints, compliance analytics, and market intelligence. We will walk you through some of the recent cases where this intelligence led to real and measurable outcomes,” she said.

She urged regulators across the continent to deepen collaboration by sharing practical experiences and developing trusted approaches to data verification, advanced analytics and consumer-focused regulation.

Makama also challenged participants to examine how regulators could ensure the independence and accuracy of regulatory data, remove barriers to information sharing and measure consumer experience beyond conventional quality-of-service metrics.

Earlier, the Executive Vice-Chairman of the NCC, Dr Aminu Maida, said African regulators were increasingly confronted with common challenges despite operating under different legal and institutional frameworks.

According to him, discussions among regulators now routinely revolve around investment, infrastructure resilience, satellite communications, cybersecurity, affordability, artificial intelligence and emerging technologies.

“We may regulate markets of different sizes, operate under different legal frameworks, and respond to different national priorities. But the realities of our work are often remarkably similar,” Maida said.

He added, “Someone asks, how are things back home? Five minutes later, we are discussing investment, infrastructure resilience, satellite services, cyber security, affordability, artificial intelligence, or the latest technology that has arrived just in time to test the regulatory framework we thought had finally settled.”

Maida said such shared experiences underscored the need for stronger collaboration among African regulators to avoid addressing similar problems independently.

“The challenge that one regulator is trying to solve has already been encountered in one form or another by a colleague elsewhere on the continent. So, the question really is how we make that exchange of experience more deliberate, more systematic, and more useful to our institutions,” he said.

He described the roundtable as an opportunity to strengthen evidence-based regulation by encouraging the use of data, market intelligence and practical experience in policymaking.

Also speaking, the Executive Commissioner, Technical Services, Sunday Oshadami, said the NCC had prioritised transparency by ensuring operators clearly understood regulatory obligations and by making key performance information available to subscribers.

He said the commission had also invested in satellite monitoring capabilities to strengthen oversight of satellite communications and improve regulatory compliance.

According to Oshadami, the commission had established facilities to monitor developments in satellite communications and continued to invest in standard monitoring solutions to support effective regulation as new technologies gain prominence.

The PUNCH earlier reported that stakeholders in Nigeria’s telecommunications sector on recently backed the Nigerian Communications Commission’s draft business rules for Mobile Virtual Network Operators, while urging the regulator to strengthen enforcement to resolve persistent operational and commercial disputes between MVNOs and Mobile Network Operators.