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By Henry Uche
No fewer than eight Nigerian underwriting firms have formally notified their shareholders of plans to raise a combined N132.5 billion, as the industry accelerates efforts to comply with a key recapitalisation programme ahead of the July 31, 2026 deadline set by the regulator, the Nigerian Insurance Commission (NAICOM).
The capital-raising drive, one of the most aggressive in the sector’s history, comes amid mounting pressure from NAICOM to strengthen balance sheets, restore confidence and reposition insurance as a credible pillar of Nigeria’s financial system.
The companies involved are; Sovereign Trust Insurance (STI) Plc, SUNU Assurances, Linkage Assurance, Guinea Insurance, Veritas Kapital Assurance, Lasaco Assurance Plc, International Energy Insurance (IEI) Plc, and Regency Alliance Insurance Plc.
Market sources say listed firms among them are expected to approach the capital market within weeks.
Lasaco Assurance has notified shareholders of its plan to raise about N25 billion, while Sovereign Trust Insurance has secured approval to raise N20 billion. SUNU Assurances also received shareholders’ backing to raise N9 billion to meet the revised minimum capital requirement for non-life insurers.
At its extraordinary general meeting, Linkage Assurance obtained approval to raise an additional N16 billion, while Guinea Insurance got the green light to raise up to N15 billion in fresh capital. Veritas Kapital Assurance plans to raise N15 billion through a private placement, while Regency Alliance Insurance is targeting N15 billion. International Energy Insurance (IEI) Plc intends to raise about N17.5 billion as part of its recapitalisation strategy.
These moves are driven by the Nigerian Insurance Industry Reforms Act (NIIRA) 2025, which significantly raised the bar for operators. Under the new law, minimum capital for non-life insurers has increased from N3 billion to N15 billion, life insurers from N2 billion to N10 billion, while reinsurance firms must now have at least N35 billion in capital.
The Commissioner for Insurance, Mr. Ayo Omosehin, has been emphatic that there will be no extensions or reversals. He has repeatedly affirmed that the recapitalisation deadline is sacrosanct, setting the tone for what many see as a defining moment for the industry.
As insurers scramble to meet the new thresholds, attention is increasingly shifting to Omosehin’s leadership and what Nigerians expect from the recapitalisation exercise. For many policyholders, raising capital alone will not be enough.
“Insurance has a deep seated hatred in the hearts of so many Nigerians, from time immemorial,” an anonymous policyholder said. “The immediate past Commissioner for Insurance, Mr. Sunday Thomas achieved a total gross premium income of N1.003 trillion at the close of the fourth quarter of 2023. This milestone was a long-standing target for NAICOM, which had been attempting to hit the N1 trillion premium target since the launch of the Market Development and Restructuring Initiative in 2009, but penetration level is still under 1%.”
The policyholder noted that the N1.003 trillion premium figure represented “a significant growth of about 27% compared to the N790 billion recorded in 2022,” but stressed that the current leadership must deliver more. “So the current CEO must do better,” he said.
Another insurance consumer, Ben Ukazu, reflected on the reforms under Mr. Thomas’ tenure, noting that they raised expectations for the present administration. “As the Commissioner for Insurance, he spearheaded various reforms and initiatives, including the promotion of micro-insurance, enforcement of compulsory insurances, and market digitization efforts, which were credited with contributing to this growth,” Ukazu said.
He added: “Under his tenure, the total assets of the sector also grew significantly, reaching approximately N2.33 trillion in 2022. This accomplishment was seen as a significant step in deepening the insurance market and improving its contribution to Nigeria’s economy.”
Ukazu was blunt about expectations from the current regulator. “So for Mr. Omosehin, we don’t care how he emerged as the Commissioner, whether he was qualified or not is not our business. All we know is President Bola Tinubu has appointed him; he must prove himself. He must deliver.”
According to him, recapitalisation must translate into real change. “There are many issues bedeviling the sector: low penetration, dearth of trust and confidence, claims denial. He must justify his appointment. The end of his time will tell. We are watching.”
With N132.5 billion now on the table and the clock ticking toward 2026, the insurance industry stands at a crossroads—where fresh capital, regulatory resolve and public trust must finally align.
