The National Insurance Commission has inaugurated a committee to oversee the sector’s recapitalisation programme, a week after President Bola Tinubu assented to the Nigerian Insurance Industry Reform Act 2025.

In a statement released on Tuesday, the commission announced that the committee was inaugurated in Abuja, and it is chaired by Mrs Oluwatoyin Charles, Director of Supervision at NAICOM.

It said the committee’s primary responsibility is to oversee the implementation of the recapitalisation programme. This includes ensuring compliance with revised capital requirements and promoting transparency and integrity in sourcing and verifying capital inflows.

The Commissioner for Insurance, Mr Olusegun Omosehin, was said to have emphasised the critical role of recapitalisation in stabilising the industry and contributing to Nigeria’s $1tn economy vision during the committee’s inauguration in Abuja.

“He urged the 11-member committee to approach their task with professionalism, diligence, and commitment to the common interest, assuring them of necessary support,” read part of the statement.

Some of the key terms of reference for the committee include, “Develop a recapitalisation roadmap: Create a detailed plan for the commission and the insurance industry. Guidelines and circulars: Develop guidelines and circulars on recapitalisation. Minimum Capital Requirements: Recommend the composition of minimum capital requirements. Incentives and Concessions: Identify incentives and concessions that may be obtained from other regulatory authorities.”

The regulator added that “The committee will submit monthly progress reports to management and provide quarterly updates to the Governing Board and stakeholders. NAICOM is confident that the committee will successfully deliver on its mandate, shaping the future of Nigeria’s insurance sector. The committee’s success is vital to the industry’s stability and growth, and NAICOM looks forward to collaborating with all stakeholders to achieve this objective.”

Tinubu last Tuesday signed into law NIIRA 2025, thus repealing and consolidating several outdated insurance laws into a single, modern legal framework. The new Act provides for comprehensive regulation and supervision of all insurance and reinsurance businesses operating within Nigeria.

NIIRA 2025 introduces critical measures such as stringent capital requirements to ensure the financial soundness of operators, enforcement of compulsory insurance policies to enhance consumer protection, digitisation of the insurance market to improve access and efficiency; zero tolerance for delays in claims settlement; creation of dedicated policyholder protection funds, especially in cases of insolvency; and expanded participation in regional insurance schemes, including the ECOWAS Brown Card System.