NAICOM Faces Legal Challenges Over Failed Insurance Firms

The National Insurance Commission (NAICOM), under the leadership of Commissioner Olusegun Ayo Omosehin, has concluded a recapitalisation exercise in Nigeria's insurance industry, which had been attempted unsuccessfully for two decades. Previous commissioners, Mohammed Kari and Sunday Thomas, faced opposition from insurance firm owners who could not meet capital requirements.

In September 2025, NAICOM issued explicit guidelines requiring all insurance firms to raise new capital within 12 months, aligning with the Nigerian Insurance Industry Reform Act (NIIRA). Despite these efforts, some companies failed to meet the deadline and have resorted to court actions against possible liquidation.

NAICOM has warned that there would be no extension of the deadline, raising questions about the companies' preparedness. While some firms have garnered public sympathy due to their past records, others are seen as detrimental to the insurance sector's reputation and need to be removed to restore public trust.