About ₦300 billion raised by Nigerian insurance companies during the recently concluded recapitalisation exercise remains held by the Central Bank of Nigeria (CBN) pending verification of the sources of the funds.
The affected insurance firms are reportedly facing challenges accessing the money following stricter verification procedures introduced by the apex bank over concerns that some of the investments may have originated from illicit sources.
However, the National Insurance Commission (NAICOM), the regulator of the insurance industry, has reportedly approved the release of the funds. The affected companies are now working to satisfy the CBN’s requirements to gain access to the capital.
Speaking during a virtual press briefing on the outcome of the Insurers Committee meeting, the Chairman of the Nigerian Insurers Association (NIA), Mrs Ebelechukwu Nwachukwu, said NAICOM had completed its part of the process.
According to her, insurance operators are currently working to meet the conditions stipulated by the CBN, with the aim of accessing the funds before the end of October 2026.
The companies had planned to deploy the additional capital in the third quarter of the year to strengthen their financial positions, improve business performance and reward shareholders with dividends in recognition of their support during the recapitalisation exercise.
The delay in accessing the funds could affect these plans, as the companies are yet to fully utilise the additional capital raised to support their operations.
During the recapitalisation exercise, which ended on July 31, 2026, 24 insurance companies raised approximately ₦300 billion in fresh capital. This amount, added to the industry’s existing capital of more than ₦700 billion, brought the total capital of the Nigerian insurance industry to about ₦1.079 trillion.
Out of the 50 insurance companies that met the recapitalisation requirements, 24 raised new capital, while the remaining 26 had already exceeded the prescribed minimum capital requirements before the exercise.
The recapitalisation programme was introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 to strengthen the financial capacity of insurance companies, improve their ability to meet claims obligations and support the growth of the industry.
Under the new requirements, life insurance companies were required to increase their minimum capital from ₦2 billion to ₦10 billion. Non-life insurance companies had to raise theirs from ₦3 billion to ₦15 billion, while reinsurance companies were required to increase their minimum capital from ₦10 billion to ₦35 billion.
The law also required participating insurance companies and reinsurers to keep their recapitalised funds in an escrow account with the CBN pending the necessary processes.
Earlier, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr Olusegun Omosehin, disclosed that the industry’s total capital had increased to ₦1.079 trillion from approximately ₦700 billion before the recapitalisation exercise.
Omosehin said the commission was working towards allowing operators to access the funds raised during the exercise. He also assured stakeholders that NAICOM would monitor how the money was utilised to ensure it served its intended purpose.
The regulator is expected to ensure that the funds are used to strengthen insurance companies’ operations and financial capacity rather than being mismanaged or diverted to unrelated investments.
The recapitalisation exercise is considered an important step towards improving the stability of Nigeria’s insurance industry, strengthening public confidence and enabling operators to take on larger risks.
However, the affected companies must satisfy the CBN’s verification requirements before they can fully access the additional capital.
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