The National Insurance Commission (NAICOM) says insurer boards must strengthen governance after recapitalization, while a Business Journal-published transcript says growth plans should match capital and risk to limit capital erosion.
NAICOM said Commissioner for Insurance Olusegun Ayo Omosehin spoke at the 2026 Insurance Directors’ Conference in Lagos on Nov. 6, urging directors to challenge management assumptions and use adequate information.
According to the transcript, Omosehin said boards should weigh growth plans against each insurer’s capital, business model and risk appetite. He cited poor underwriting, high operating costs, unsuitable investments and uncontrolled expansion as threats to capital. Omosehin called capital adequacy “a continuous responsibility.”
Section 15 of the Nigerian Insurance Industry Reform Act, 2025, requires insurers to maintain the higher of a fixed capital floor or the risk-based amount set by NAICOM. The fixed thresholds are ₦15 billion for non-life insurance, ₦10 billion for life assurance and ₦35 billion for reinsurance. Risk-based calculations must account for insurance, market, credit and operational risks.
An Aug. 13 NAICOM notice said 48 insurance companies and two reinsurance companies had met the minimum requirements. EconoTimes previously covered Veritas Kapital’s ₦10.248 billion capital shortfall and later compliance listing.
The transcript also describes a balance between shareholders’ expectations for returns and growth and insurers’ duties to policyholders, creditors, employees, regulators and the public. Omosehin said shareholder interests should not override prudential concerns or weaken board independence. He said a stronger insurance industry could support investment and help manage increasingly complex risks in infrastructure, energy, manufacturing, agriculture and construction, while expanding domestic risk retention and reducing reliance on foreign insurance markets.
A June NAICOM directive required licensed insurers to submit data for a risk-based capital study using financial positions as of Dec. 31, 2025. The submission deadline was June 15, 2026.
