The National Insurance Commission has flagged weak financial disclosures, solvency gaps and deficiencies in recapitalisation planning by some insurance companies, warning that the ongoing recapitalisation exercise leaves little room for repeated errors or delays in regulatory approvals.
The concerns were raised at a one-day stakeholders’ session jointly organised by the Nigerian Insurers Association and NAICOM for the insurance industry at the NEM Insurance auditorium in Lagos.
The PUNCH reports that the session brought together finance, audit and compliance officers of insurance firms, external auditors, actuaries and industry consultants.
In his welcome address, the Chairman of the Accounting Technical Committee of the NIA, Dr Emmanuel Otitolaiye, said the engagement was necessitated by issues identified during NAICOM’s review of insurers’ 2024 audited financial statements. According to him, the objective of the session was for insurers to take on board the learning points and incorporate them into their 2025 financial statements to reduce the volume of regulatory queries and enable faster approvals.
He said, “The importance of this programme cannot be overemphasised, as it provides an opportunity for us to learn directly from NAICOM based on the review of the 2024 financial statements submitted by the industry.
Several issues were identified during the review, and in view of the collaborative relationship between NAICOM and the industry, the Commission is not primarily focused on penalising operators but rather on working with the industry to address the identified learning points. This is the rationale behind the organisation of this programme in January.
“The objective is for all stakeholders to take on board these learning points and incorporate them into the 2025 financial statements so that by the time accounts are submitted to NAICOM, there will be fewer issues to contend with, and approvals can be granted more expeditiously. It is also important to note that this is a year of recapitalisation, with significant work and engagement ongoing in that regard. Consequently, this is not a year in which financial statements can afford to be returned repeatedly for correction. The luxury of time is limited, not only for NAICOM but also for the industry, given the numerous activities scheduled throughout the year.”
The Director-General of the Nigerian Insurers Association, Bola Odukale, said the annual programme had continued to strengthen collaboration between member companies and the regulator, adding that deeper engagement was in the overall interest of the insurance industry.
The Director of Supervision at NAICOM, Mrs Oluwatoyin Charles, said the commission was committed to providing an enabling environment for a strong and stable insurance industry, particularly amid sweeping regulatory changes introduced under the Nigerian Insurance Industry Reform Act 2025.
Charles said, “As we gather today, our discussions take on even greater significance given the ongoing transformations in our regulatory environment, particularly the recapitalisation exercise introduced under the NIIRA 2025. This reform represents a pivotal milestone for our industry, one designed to strengthen solvency, enhance risk-bearing capacity, and position Nigerian insurance institutions for sustainable growth and increased public confidence.
“We recognise that many organisations are already taking bold steps toward meeting the new capital thresholds and structuring their internal processes to ensure timely compliance. Our level of readiness as an industry reflects a collective determination to not only meet regulatory requirements but also to embrace this transition as an opportunity for modernisation, improved governance, and greater operational resilience.”
Mrs Charles also urged insurers to improve accuracy and transparency in financial reporting under IFRS 17 Insurance Contracts, stressing that weak disclosures undermine confidence and delay regulatory processes. She noted that financial integrity was fundamental to building trust and safeguarding the future of the industry.
“Financial integrity is not simply a standard; it is a promise. A promise that every number tells the truth, every report earns trust, and every decision protects the future. This quote resonates deeply with each of us, CFOs, auditors, and actuaries, because we collectively form the backbone of financial accountability in our sector. Your roles, though distinct, are interwoven by a shared responsibility: ensuring that financial reporting is accurate, transparent, and aligned with both local and global expectations.”
Providing highlights of the recurring errors in the insurers’ financial statements, the Senior Financial Analyst in the Office of the Deputy Commissioner (Technical) at NAICOM, Mr Gabriel Oloba, listed weaknesses in disclosures and reconciliation processes within the notes to the accounts, noting that such shortcomings frequently slow down regulatory review and approval.
Oloba advised insurers to focus on accuracy, consistency and full compliance with reporting standards, adding that improved financial reporting would support a smoother review process and quicker regulatory clearance. He also urged firms to fully disclose information relating to the new capital regime in line with existing regulations, including Minimum Capital Requirement, Risk-Based Capital, Capital Adequacy and the Solvency Control and Intervention Framework.
