The National Insurance Commission has reiterated that it will not extend the ongoing recapitalisation deadline in the insurance industry, stressing that the timeline is clearly stipulated by law and cannot be altered.

The commission’s Deputy Commissioner for Insurance (Technical), Dr Usman Jankara, made this known while representing the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr Olusegun Omosehin, at a seminar for insurance journalists held in Abuja on Tuesday.

Jankara clarified the commission’s stance during a question-and-answer session with journalists, stating firmly that there was no room for a shift in the recapitalisation timetable.

“I would like to state unequivocally that the recapitalisation deadline will not be extended. The basic reason is this: it is the law,” he said.

According to him, any attempt to alter the deadline would require a fresh legislative process involving the National Assembly and presidential approval.

“Once it’s the law, nobody has the power to extend what the law had indicated as a deadline. If you need to do that, you would need to go back to the National Assembly, get that section amended, and get Mr President’s assent. It is not a journey we’re willing to embark on,” he added.

Jankara noted that the Nigerian Insurance Industry Reform Act 2025 clearly fixes the recapitalisation deadline for July 30, 2026, maintaining that genuine and serious operators in the industry should be able to comply within the timeframe.

“We believe that the deadline as clearly highlighted by NIRA is doable, it is reasonable, and it is something serious players within the insurance sector will be able to meet within that time frame,” he said.

He expressed confidence that the recapitalisation exercise would ultimately strengthen the insurance industry and improve its capacity to meet obligations to policyholders.

“By the end of the deadline provided by NIRA, that is July 30, 2026, we’ll be coming out to Nigerians with new insurance companies that have met the requirement, that are stronger, that are more well-managed, and that have the financial muscles to meet their obligations to Nigeria,” he added.

Earlier in the event, Jankara delivered the commissioner’s welcome address, offering an apology for the absence of Omosehin.

He explained that the seminar was organised to enhance trust, transparency and engagement between NAICOM and media professionals.

“Let me start by saying that this gathering is not just an event; it is a strategic platform to strengthen engagement and trust between the National Insurance Commission and media professionals who play a very critical role in shaping public perception of the Nigerian insurance industry,” he said.

Jankara outlined the objectives of the seminar as fostering collaboration, encouraging accurate reporting and drawing attention to ongoing reforms in the insurance sector, adding that the media plays a central role in improving public understanding and insurance penetration.

He said NAICOM, under its current leadership, had pursued reforms aimed at balancing prudential oversight with innovation in the industry.

According to him, these reforms include the adoption of risk-based supervision focused on high-risk institutions, improvements in market conduct, faster claims settlement processes, and “zero tolerance for non-settlement of complaints or claims.”

He added that the commission was also promoting inclusive growth through microinsurance, takaful, insurtech solutions and products tailored for micro, small and medium enterprises.

Jankara said NAICOM had created room for innovation by establishing a technology directorate, an innovation hub and a regulatory sandbox to support ideas such as embedded insurance products and usage-based pricing models.

He further disclosed that the commission was collaborating with the Nigeria Police Force to enforce compulsory third-party motor insurance and strengthen systemic resilience in the sector.

According to him, sustained stakeholder engagement and enforcement efforts have gradually changed public perception of insurance from a poorly understood product to one that is “gradually being trusted.”

Speaking specifically on the recapitalisation exercise, Jankara described it as a major structural reset for the Nigerian insurance market.

“The ongoing recapitalisation exercise in the Nigerian insurance industry is more than just a regulatory milestone. It is a bold transformation that will redefine the Nigerian insurance industry for global relevance,” he said.

He explained that NAICOM was implementing a risk-based capital framework and engaging the services of the Big Four auditing firms to independently verify insurers’ capital positions.

“This approach is to ensure and guarantee confidence, fairness and trust in the process, reinforcing the industry’s commitment to global best practices,” he said, noting that the reforms align with the Federal Government’s ambition of building a $1tn economy.

Jankara also described the Nigerian Insurance Industry Reform Act 2025 as a modern legislative framework designed to strengthen supervision, encourage innovation and enhance consumer protection.

He said the Act introduces clearer timelines for claims settlement, imposes tougher penalties for infractions and establishes an Insurance Policyholders’ Protection Fund to safeguard consumers in cases of insurer insolvency.

“NIRA is therefore not just a law; it is a blueprint for a stronger, more inclusive insurance industry,” he said.

Looking ahead, Jankara said NAICOM would intensify its focus on consumer protection, strengthen supervisory mechanisms, expand data and analytical capabilities, deepen insurance penetration across the country, and promote sustainability and innovation within the sector.

The Nigerian Insurance Industry Reform Act 2025 was signed into law in August 2025, replacing outdated insurance legislation and modernising the regulatory framework governing the industry.

The Act significantly increases minimum capital requirements for insurance companies and introduces a risk-based capital regime to ensure firms maintain capital levels aligned with their risk exposure.

It also strengthens consumer protection measures, enhances market conduct standards, and formally establishes the Insurance Policyholders’ Protection Fund to protect policyholders in the event of insurer insolvency.