Insurance companies are struggling to access about N300 billion in fresh capital raised during the recently concluded recapitalisation exercise, as the funds remain with the Central Bank of Nigeria (CBN) pending checks for possible illicit inflows.
Vanguard learnt that the CBN introduced a stricter capital verification regime after suspicions that some of the new investments in the firms may have come from illicit sources. Many of the insurers have found the process difficult to scale.
It was further learnt that the National Insurance Commission (NAICOM) has approved the release of the funds to the insurers, but the affected companies are still working through the CBN’s requirements.
Speaking at a virtual press briefing on the outcome of the Insurers Committee meeting, the Chairman of the Nigerian Insurers Association (NIA), Mrs. Ebelechukwu Nwachukwu, said the sector regulator had done its part, while operators were now working to meet the CBN’s criteria and access the funds on or before the end of this month.
The insurers had planned to deploy the new capital in the third quarter to strengthen their financial performance in 2026 and reward investors with good dividends for backing the recapitalisation.
A total of 24 insurance companies raised N300 billion in fresh capital during the exercise. Added to the existing capital of over N700 billion, total industry capital now stands at N1.079 trillion.
Under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, underwriters and reinsurers that took part in the recapitalisation exercise, which ended on July 31, 2026, must keep the recapitalised funds in an escrow account with the CBN.
Of the 50 firms that cleared the recapitalisation hurdle, 24 raised fresh capital, while 26 had already exceeded the minimum capital requirement.
The NIIRA raised minimum capital for life underwriters from N2 billion to N10 billion, for non-life underwriters from N3 billion to N15 billion, and for reinsurers from N10 billion to N35 billion.
The Commissioner for Insurance and CEO of NAICOM, Mr. Olusegun Omosehin, had earlier disclosed that industry capital had risen to N1.079 trillion from about N700 billion before the exercise.
He said NAICOM wants operators to access the funds and promised that the regulator would monitor them to ensure the money serves its intended purpose and is not mismanaged or diverted.
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