Business

Why Capital Base Alone Won’t Attract Foreign Investors to Insurance Sector — SEC Commissioner

Published

1 month ago

August 11, 2026

Preport

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.

The post Why Capital Base Alone Won’t Attract Foreign Investors to Insurance Sector — SEC Commissioner appeared first on Business Today NG.

Related Topics:attract Base capital Commissioner foreign Insurance investors SEC Sector wont

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Business

Gambia asks GTB, Access Bank, others to dismiss non-Gambian employees

Published

7 hours ago

September 24, 2026

Preport

The Central Bank of The Gambia ordered all commercial banks operating in the country to dismiss non-Gambian employees.

In a letter dated 19 September, the central bank asked commercial banks to phase out non-citizens who are not on approved expatriate quotas by the end of the year.

The letter, signed by the bank’s Second Deputy Governor, Ousman Mendy, was addressed to managing directors of all banks operating in the country, including Nigerian subsidiaries such as First Bank, Zenith, Access, Eco, and the Guaranty Trust Bank.

The regulator also directed that the non-citizens dismissed should be replaced with qualified Gambians.

It directed banks to put clear succession plans in place quickly and transfer skills. It also asked banks to keep operations running smoothly during the transition.

According to the letter, the decision followed a meeting between the central bank and bank managing directors in August, during which they discussed concerns about the employment of non-Gambian workers in the banking sector.

The CBG said a recent industry study it conducted found that banks employ a large number of foreigners.

It added that, in addition to recruiting expatriate workers, some banks allegedly violated provisions of The Gambia’s Labour Act 2023 and Guideline 9 on expatriate staff.

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These provisions identify the circumstances under which expatriate workers can be employed and the quotas permissible.

“A recent industry study conducted by the Bank revealed that a relatively high number of non-Gambians are employed by banks, in addition to recognised expatriate staff.

“This is in violation of the provisions of the Labour Act 2023 and also not in line with guideline 9 on expatriate staff,” the letter read.

The regulator further urged banks to adhere to the country’s laws and strictly follow the central bank’s guidelines.

“You are hereby directed to ensure full compliance with the law and strict compliance with CBG’s guidelines,” it stated.

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Business

African Alliance Secures Shareholders Nod to Raise N12bn, Eyes Return to Active Trading

Published

15 hours ago

September 24, 2026

Preport

BY NKECHI NAECHE-ESEZOBOR—The board of directors of African Alliance PLC on Wednesday got shareholders nod to raise N12 billion additional capital to shore up its baseline and meet National Insurance Commission, (NAICOM), Minimum capital requirement.

According to the details made available by the company under the approved resolutions, the Board is empowered to execute the capital injection through various channels, including private placement, rights issue, public offer, asset sales, or zero-coupon convertible subordinated debt notes.

The approval which was granted at the company’s Extra-ordinary general meeting held today in Lagos, shareholders also empower the board to determine conversion terms, allot shares, and revalidate legacy shares where necessary.

The EGM aligns with the Nigerian Insurance Industry Reform Act, 2025 (NIIRA), the Companies and Allied Matters Act, 2020 (CAMA 2020), the Investment and Securities Act, 2025, the Rule Book of the Nigerian Exchange Limited, and other regulations and directives of NAICOM.

Applauding the shareholders for the approval, the Chairman of company, Anthony Isa, said “The approval granted by our shareholders today marks a vital milestone in securing the long-term strength and regulatory compliance of African Alliance Insurance Plc. By authorising the Board to raise up to N12 billion across flexible capital structures—including equity, debt notes, and asset optimisation—we are positioning the company to fully satisfy the recapitalisation requirements of the Nigerian Insurance Industry Reform Act while creating sustainable value for all stakeholders.

The board also got approval as part of and in furtherance of the company’s recapitalisation, approval “to sell, transfer or otherwise dispose of such properties or other assets of the company, whether or not constituting a major asset transaction, on such terms and conditions as may be approved by the board of directors, and permitted by applicable law, subject to the requisite regulatory approvals.”

In addition, the board was also mandated to amend the organisation’s Memorandum and Articles of Association (MEMART) “to the extent necessary or desirable to give effect to the recapitalisation, including any consequential increase in issued share capital and the allotment of shares pursuant thereto.”

Also, Managing Director/Chief Executive Officer Ayobami Ogunkeye, African Alliance Plc, assured shareholders that leadership is thoroughly vetting all potential equity partners in order to safeguard the firm’s foundational identity.

“We are extremely cautious about who we bring on board or align with, because this is a lasting commitment,” Ogunkeye stated. “Many parties have capital, but what drives them? Do they value what African Alliance represents, or are they simply after breaking it up for parts? We are rigorously vetting interested parties to make sure our goals match theirs.”

Ogunkeye disclosed that leadership is actively in talks with the Nigerian Exchange Limited (NGX) and other regulatory agencies to clear up longstanding filing gaps and open the door for the company’s shares to begin trading again.

“There is underlying worth here that matters greatly. We are actively in discussions with the regulators so trading in our stock can be reinstated on the exchange,” he noted. “At present, our share price sits well under its face value, but once this recapitalisation drive is finalised, we anticipate raising the share value to roughly 70 kobo or N1.00, restoring our position among stocks that are actively traded and hold real worth.”

The post African Alliance Secures Shareholders Nod to Raise N12bn, Eyes Return to Active Trading appeared first on Business Today NG.