Insurance companies in Nigeria are facing delays in accessing approximately ₦300 billion raised during the recently concluded recapitalisation exercise, as the Central Bank of Nigeria (CBN) carries out verification checks on the funds.
The money remains held by the apex bank amid concerns over the possible inflow of funds from illicit sources into some insurance companies during the capital-raising exercise.
The stricter verification process has reportedly made it difficult for several insurers to access their newly raised capital, despite the National Insurance Commission (NAICOM) giving approval for the funds to be released.
However, the affected companies are still working through the CBN’s requirements to secure access to the money.
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 now working to satisfy the CBN’s criteria, with the aim of accessing the funds before the end of October 2026.
The insurers had planned to deploy the new capital in the third quarter of the year to strengthen their financial performance and improve returns to investors through dividends in recognition of their support during the recapitalisation programme.
During the exercise, 24 insurance companies collectively raised approximately ₦300 billion in fresh capital. When combined with the industry’s existing capital of more than ₦700 billion, the total rose to ₦1.079 trillion after recapitalisation.
The Nigerian Insurance Industry Reform Act (NIIRA) 2025 required underwriting firms and reinsurers that participated in the exercise, which ended on July 31, 2026, to keep their recapitalised funds in an escrow account with the CBN.
Of the 50 insurance companies that met the recapitalisation requirements, 24 raised additional capital, while the remaining 26 had already exceeded the minimum capital thresholds.
Under the new requirements, life insurance companies were required to increase their minimum capital from ₦2 billion to ₦10 billion. Non-life insurers had to raise theirs from ₦3 billion to ₦15 billion, while reinsurers were required to increase their capital from ₦10 billion to ₦35 billion.
NAICOM Commissioner for Insurance and Chief Executive Officer, Mr Olusegun Omosehin, had earlier confirmed that the industry’s total capital had increased to ₦1.079 trillion from approximately ₦700 billion before the exercise.
Omosehin said the regulator was working towards allowing insurance operators to access the recapitalisation funds. However, he stressed that NAICOM would monitor how the money was used to ensure it served its intended purpose.
The commission intends to ensure that the funds are not mismanaged or diverted into unrelated activities.
The delay in releasing the ₦300 billion therefore leaves insurers waiting to deploy the additional capital, even as regulators work through the verification process to confirm that the funds meet the required standards.
