SEC Opens Insurance Recapitalization Desk, Promises 14-Day Fast-Track Approvals
Nigeria’s insurance sector is set for transformation as SEC introduces a fast-track recapitalization desk.
Approvals will now be issued within 14 days, boosting investor confidence and strengthening regulatory collaboration with NAICOM.
The Securities and Exchange Commission (SEC) has established a dedicated desk to expedite approvals for insurance sector recapitalization, committing to issue decisions within 14 days upon receipt of complete applications.
This development was announced at the 19th Insurers’ Committee meeting in Lagos by Ebelechukwu Nwachukwu, Head of the Communication and Stakeholders Management Sub-Committee. The move follows the signing of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 by President Bola Tinubu.
The Act introduces sweeping reforms, including higher minimum capital requirements for insurance firms. According to Nwachukwu, SEC’s Director-General, Dr. Emomotimi Agama, emphasized that the concessions being offered are part of a stronger collaboration between SEC and NAICOM, aimed at revitalizing the sector.
“For the first time, NAICOM and SEC are working hand in hand in such a strong way, and the insurance industry stands to benefit immensely,” she said.
Agama noted that the SEC has granted about nine concessions and lowered fees for recapitalization, adding that Nigerian investors who recently raised over N3 trillion for the banking sector are eager for fresh opportunities in insurance.
He encouraged insurers to position themselves to attract these inflows. Insurance Commissioner Olusegun Omosehin reminded stakeholders that recapitalization under the NIIRA Act should be viewed not only as fundraising but also as an opportunity to restructure governance and rebuild public trust.
NAICOM has released draft guidelines on minimum capital requirements, InsurTech, and Takaful for industry feedback, with final guidelines expected soon. A Policyholders’ Protection Fund, managed by an independent audit firm, is also being planned.
Nwachukwu urged insurers to begin submitting recapitalization plans, stressing that NAICOM wants both the capital-raising strategies and detailed plans for how the funds will be used before granting approvals.
She added that NAICOM remains committed to ethical practices and consumer fairness, highlighting that the industry has recently honored several large claims, demonstrating its resilience.
With over 40 million SMEs still underserved and health insurance mostly handled by HMOs, regulators encouraged insurers to expand into new growth areas while strengthening their recapitalization efforts.
“This is not just about raising capital,” Nwachukwu concluded. “It’s about transforming the insurance industry into a trusted pillar of Nigeria’s financial system.”
