BY NKECHI NAECHE-ESEZOBOR—The successful completion of recapitalization exercise in  Nigeria’s insurance sector marks a new beginning and a new phase of growth for the industry.

However, experts warn that attracting Foreign Direct Investment (FDI) and institutional investors will require a longer track record of reliable dividend payouts and stricter regulatory enforcement.

Mallam Kasimu Garba Kurfi is a veteran Nigerian stockbroker, and the Managing Director/CEO of APT Securities and Funds Limited, disclosed this to BusinessTodayNG in an interview.

According to him, while the increased capital base positions underwriters to take on high-value risks in primary economic drivers—such as oil and gas, petroleum refineries, and aviation—investor confidence hinges heavily on sustained profitability.

He notes that institutional funds typically demand proof that newly injected capital yields regular, substantial dividends before committing fresh capital to the market.

Beyond financial capacity,he  emphasize that market expansion relies on mandatory policy compliance. Regulatory bodies and enforcement agencies must aggressively implement mandatory coverage across commercial buildings, market fire policies, and motor vehicles.

Kurfi who also doubles as a Non-Executive Commissioner on the board of the Securities and Exchange Commission, argued  that as policyholders experience clear, tangible value for their premiums, voluntary compliance will naturally rise, expanding the sector’s premium pool.

“Central to this transformation is the seamless execution of claims management. Operators face growing pressure to streamline payout processes, eliminate unnecessary administrative bottlenecks, and prioritize rapid claims settlement.

“By pairing enhanced underwriting capacity with hassle-free claims resolution, the insurance sector aims to build the public trust necessary to transform its increased balance sheets into long-term commercial growth.”

He noted that the expected return for 2026 will likely to be at least 50% with All share index now at 58% and expected to hit 100% by the listing of Dangote Refinery.

In pursuant to Section 15 and other relevant provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law on 31 July 2025 by His Excellency, President Bola Ahmed Tinubu, a as part of his administration’s financial sector transformation agenda towards the attainment of a US$1 trillion economy by 2030.

The successful conclusion of the exercise marks a defining milestone in the transformation of Nigeria’s insurance industry and signals the beginning of a new era for insurance in the country.

It represents a major step towards building a stronger, more resilient, adequately capitalized, professionally governed, and policyholder-focused insurance sector that is better positioned to support national economic growth, deepen financial inclusion, mobilize long-term investment capital, and contribute meaningfully to the stability of Nigeria’s financial system.

Following the enactment of NIIRA 2025, the Commission commenced a structured implementation process to provide strategic oversight, ensure transparency, support operators throughout the transition, and facilitate the effective implementation of the new minimum capital requirements within the statutory compliance period.

To ensure an orderly, transparent, credible, and verifiable process, the Commission issued the Guidelines on the Implementation of Minimum Capital Requirements (MCR) for Insurance and Reinsurance Companies in Nigeria. The Guidelines provided detailed guidance on the statutory minimum capital requirements under NIIRA 2025, eligible and ineligible capital instruments, admissible and non-admissible assets, verification and validation procedures, regulatory timelines, reporting obligations, and supervisory expectations throughout the implementation period.

Through a comprehensive process of review, verification, and validation, the recapitalization exercise has delivered a major boost to the Nigerian insurance industry. It has enhanced the financial resilience of operators, attracted substantial domestic and foreign investment, and rekindled strong investor confidence.

The verified outcome of the exercise indicates that Forty-three (43) insurance and reinsurance companies successfully met the prescribed Minimum Capital Requirements. However, Eight (8) insurance companies that submitted evidence of compliance shortly before the statutory deadline are currently undergoing final verification and regulatory review. This would be concluded within fourteen days.

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