Economy
NAICOM: No going back on 2026 recapitalisation deadline
- /home/naijuinz/public_html/wp-content/plugins/mvp-social-buttons/mvp-social-buttons.php on line 27
https://naijablitznews.com/wp-content/uploads/2024/11/NAICOM.jpg&description=NAICOM: No going back on 2026 recapitalisation deadline', 'pinterestShare', 'width=750,height=350'); return false;" title="Pin This Post">
- Share
- Tweet /home/naijuinz/public_html/wp-content/plugins/mvp-social-buttons/mvp-social-buttons.php on line 72
https://naijablitznews.com/wp-content/uploads/2024/11/NAICOM.jpg&description=NAICOM: No going back on 2026 recapitalisation deadline', 'pinterestShare', 'width=750,height=350'); return false;" title="Pin This Post">
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
How to apply: FG opens access to 250,000 free business name registrations
The Federal Government has opened access to 250,000 free business name registrations for eligible entrepreneurs across Nigeria as part of efforts to support the growth and development of Micro, Small and Medium Enterprises (MSMEs).
The initiative, approved under the administration of President Bola Ahmed Tinubu, is designed to ease the cost of formalising small businesses and encourage more entrepreneurs to register their businesses.
Interested and eligible entrepreneurs have been advised to apply through the official SMEDAN portal at portal.smedan.gov.ng to become beneficiaries of the programme.
The registration is completely free, with the Corporate Affairs Commission (CAC) expected to process the business name registration without charging applicants.
The government also warned entrepreneurs to be wary of fraudsters who may attempt to exploit the programme.
Applicants have been advised not to pay anyone claiming to have the ability to fast-track or secure their registration, as no payment is required for the approved free registration.
Entrepreneurs seeking to benefit from the initiative are therefore encouraged to use only the official SMEDAN portal and avoid sharing payments or personal information with unauthorised agents.
Economy
Over 5,000 fibre cuts recorded in six months – NCC
The Nigerian Communications Commission (NCC) has disclosed that more than 5,000 fibre-optic cable cut incidents were recorded across the country in the first six months of 2026, with road construction, excavation and related civil works identified among the major causes.
The Executive Vice-Chairman of the NCC, Dr Aminu Maida, disclosed this on Tuesday at a stakeholders’ workshop on the protection of fibre-optic cables during road construction, excavation and other activities in Nigeria.
Maida said the high number of incidents required stronger collaboration between telecommunications operators, road contractors, government agencies, regulators and security institutions to prevent further damage to critical telecommunications infrastructure.
According to him, many of the incidents occurred because of inadequate coordination among stakeholders involved in road and other construction activities. He said the consequences of fibre cuts extended beyond the immediate physical damage to cables, stressing that they could disrupt essential services and affect millions of Nigerians.
The NCC boss recalled the nationwide telecommunications disruption in February 2024, when fibre cuts, including those caused by road construction, affected one of the major telecommunications operators. He said millions of subscribers were unable to make calls, send messages or access the internet for several hours, while subscribers who moved to alternative networks caused congestion on those networks.
According to him, the incident demonstrated how damage to one network could quickly have wider national consequences.
“In the first six months of this year alone, more than 5,000 fibre cut incidents were reported from road excavation, construction, and related civil work. A damaged fibre cable is therefore not simply a cost to an operator, it is a cost to Nigerians and to the wider economy.
“Those affected were not numbers in an incident report. They were parents, businesses, workers, and citizens cut off from people and services on which they depended on,” Maida said.
He stressed that preventing fibre cuts should be prioritised rather than waiting to repair damaged infrastructure after incidents had occurred.
Maida said telecommunications operators must provide accurate information on the location of their infrastructure and respond promptly when contacted before construction begins. He added that contractors must check for underground infrastructure before excavation and make adequate plans for its protection.
The NCC chief also urged regulators and security agencies to provide guidance and ensure accountability, stressing that coordination should form part of the design and execution of every relevant infrastructure project.
He said the commission remained committed to working with public and private stakeholders to make coordination a standard practice in road construction and other civil works.
Earlier, the Director of Critical National Assets and Infrastructure Protection in the Office of the National Security Adviser, AVM Effiong Ewa, said the protection of fibre-optic infrastructure was a shared national responsibility.
Ewa noted that telecommunications infrastructure had been designated as Critical National Information Infrastructure, warning that negligence or interference that exposed the assets to damage could constitute an offence under Nigeria’s legal framework.
He called for strict adherence to established protocols, guidelines and procedures during construction and maintenance activities.
Also speaking, the Permanent Secretary, Federal Ministry of Works, Mr Rafiu Adeladan, said the ministry recognised that road and telecommunications infrastructure often operated within the same physical space.
He said excavation, grading, reconstruction, utility relocation and other road activities could inadvertently damage vital fibre-optic infrastructure where adequate coordination and precautions were not in place.
Adeladan called for stronger mechanisms for coordination and information sharing before and during road construction activities. He said road contractors, consultants and relevant agencies should have access to accurate information on the location of telecommunications infrastructure before excavation begins.
On his part, the Permanent Secretary, Federal Ministry of Communications, Innovation and Digital Economy, Engr Nadungu Gagare, said protecting telecommunications infrastructure was not the responsibility of one institution, but required collaboration among government ministries, regulators, security agencies, construction companies, utility providers and other stakeholders.
Gagare said the Federal Government had established a tripartite standing committee on the protection of fibre-optic infrastructure to strengthen collaboration and promote a coordinated approach to infrastructure protection.
He said the committee would also promote compliance with established standards and right-of-way regulations, improve information sharing and support measures to prevent avoidable damage.
The workshop, organised by the Federal Ministry of Communications, Innovation and Digital Economy in collaboration with the Federal Ministry of Works, NCC, Office of the National Security Adviser and Nigeria Security and Civil Defence Corps, is aimed at developing practical measures to protect fibre-optic cables during road construction and other civil works.
Economy
NRS boss, Adedeji under fire over Nigerian economy comment
Nigerians have tackled the Executive Chairman of the Nigeria Revenue Service, Zacch Adedeji, over his recent comment about critics of economic reforms under President Bola Ahmed Tinubu.
DAILY POST reports that in a viral video, Adedeji questioned critics of Tinubu’s economic reforms about what they would have done differently.
“That is what I get worried about when I listen to some people about the economy and everything.
“Just ask them, what would they do differently? Mr President, I don’t want you to wonder. You have elevated the system from what they know and wonder,” Adedeji told President Tinubu.
Adedeji’s comment triggered reactions from Nigerians on X.
Reacting, a development professional and former Director-General of the Bureau of Public Service Reforms, Joe Abah, described Adedeji’s comment as insensitive.
“If true, this is a deeply insensitive statement.
“But to answer the question of what I would have done differently, I can just look at the UK’s Andy Burnham, who is trying to tackle the cost of living.
“In just 19 days, he has removed the 5 percent VAT on domestic electricity (it is 7.5 percent in Nigeria); capped bus fares at £2 per ride by reimbursing private sector operators for the difference in real costs; pledged a 20 percent cut in business rates for pubs and clubs (an important part of British social life); maintained and adjusted Universal Credit to favour the poorest and most vulnerable.
“So, I would have used the increasing tax revenue to tackle the cost of living. That is what I would have done differently at my own level. Hope that helps,” he said on X on Saturday.
Similarly, a lawyer known, Vena Ikem wrote on X: “He should ask himself what all the millions of dollars he is spending mean to the tax he is collecting even from poor people. If karma truly fulfils, this man will get his just deserts in the land of the living. This arrogance is from getting away with stealing tax money.”
Also, Adekunle Oderinde wrote on X: “The entire convoy of Zacch Adedeji is more expensive and longer than the convoy of UK Prime Minister, yet he is talking about suffering Nigerians complaining about the effects of the policies of his principal, President Tinubu, who drives an expensive and long convoy on scarce resources.”
-
News24 hours agoOsun Poll: Davido’s Father Alleges APC Spent N60bn on Vote Buying
-
News22 hours agoNigeria Eyes Manufacturing Boom as FG Moves to Maximise China’s Zero-Tariff Policy
-
News23 hours agoNigerian lands in Accra Court for attempting to rob three Ghanaian banks
-
News22 hours agoAregbesola hails Adeleke’s victory says “Osun people have given their verdict”
-
News22 hours agoEFCC V Osun: Gov Adeleke orders AG to withdraw case
-
News22 hours ago83 More Nigerians to Return from South Africa as FG Renews Fight Against Afrophobia
-
News20 hours agoAbuja Set for Global PR Summit as Nigeria Unveils Jollof Festival, Cultural Showcase
-
News9 hours ago(Analysis)Abuja Flooding Did Not Start Today: FCT Must Move Beyond Political Blame
