As part of efforts to promote insurance awareness and penetration throughout the country, the insurance industry has organised insurance training session for workers in Enugu State.

President Bola Tinubu, signed the Nigerian Insurance Industry Reformed Act (NIIRA) 2025 into law in July 2025. The Act is expected to reform the insurance industry, ensure Nigerians enjoy the benefits of insurance which is a catalyst to growing the Nigerian economy.

To this end, the Insurance Industry Consultative Council (IICC) under the leadership of its Chairman. Mrs. Yetunde Ilori, led all arms of the industry, including NAICOM, NIA, NCRIB, ILAN, ARIAN and CIIN to Enugu where the delegates from various ministries of the State Government were educated about the benefits of embracing insurance.

Mrs. Ilori said that the industry thought it was necessary for Enugu to feel the industry, noting that the State Government under the leadership of the Governor, Peter Mbah has been so involved promoting compulsory insurances in the State. She also appreciated the Government for supporting the training by approving the attendance of its workers.

The President of ILAN, Mr. Ikechukwu Udobi addressed the delegates as being privileged to have been selected out of many to attend the training.

Speaking on behalf of the Government, the Secretary to the State Government, Professor Chidebere Onya appreciated the industry for deeming it fit to train the citizens of the Coal City State on benefits of insurance. He stated that insurance is indeed a catalyst to growing the State’s economy and the Government is definitely going to take advantage of this.

The delegates applauded the IICC for the thoughtful training with the caliber of experienced experts who delivered several informative and innovative papers on compulsory insurances.

Mr. Tope Adaramola, who represented the NCRIB acknowledged the faculties and the delegates for their contributions towards the success of the training, submitting that the IICC is so expectant of feedback from the training and hoping see the economy of Enugu grow through the adoption of compulsory insurances.

The Board of Directors of Sovereign Trust Insurance Plc, chaired by Mr. Abimbola Oguntunde, has approved an initial capital raise of N5 billion through a Rights Issue, says the management of the insurance company.

This represents a strategic first step in the company’s phased recapitalisation agenda, undertaken in alignment with the requirements of the Nigerian Insurance Industry Reform Act (NIIRA) recently signed into law by President Bola Tinubu.

The NIIRA framework mandates stronger capital buffers and enhanced solvency positions across the insurance sector, reinforcing the need for proactive capital planning by responsible operators.

The Rights Issue is projected to be completed within the first quarter of 2026. In line with global best practice, the Company has commenced structured engagements with all appointed professional parties, including issuing houses, legal advisers and auditors, and is currently finalising the necessary regulatory approvals prior to the formal opening of the offer to shareholders.

At the company’s 30th Annual General Meeting held on 25 September 2025; shareholders approved a set of key resolutions designed to strengthen Sovereign Trust Insurance Plc’s strategic and financial position. Chief among these was the endorsement of a capital raise of up to N20 billion to reinforce the balance sheet, improve liquidity buffers, and expand underwriting capacity in line with the heightened capital expectations introduced under the NIIRA regime.

Shareholders also approved the payment of a 5 kobo dividend per share, affirming confidence in the Company’s financial discipline and commitment to sustained value creation.

The market responded positively to these developments, with the Company’s stock emerging among the top gainers on the Nigerian Exchange (NGX) over several trading sessions in October 2025 – a clear indication of growing investor confidence and the strength of the Company’s operational fundamentals.

Commenting on this development, the Managing Director/Chief Executive Officer, Mr. Olaotan Soyinka, reiterated Management’s resolve to position the company among the top five insurers in Nigeria – a target aligned with industry benchmarks for operational efficiency, premium growth, and digital service delivery.

He encouraged shareholders to participate fully in the Rights Issue when it opens, noting that the Company remains firmly committed to innovation, digital transformation, market agility, and underwriting excellence.

According to him, these pillars are critical for sustaining long-term performance, improving customer experience and consolidating the Company’s position in a rapidly evolving insurance landscape.

By Sola Alabadan

The National Insurance Commission (NAICOM) has urged stakeholders in the Nigerian insurance industry not to view the current recapitalisation exercise as a regulatory burden, but as a strategic opportunity to redefine the industry’s future.
GOODWILL MESSAGE BY Dr Usman Jankara on behalf of Mr Olusegun Omosehin, THE COMMISSIONER FOR INSURANCE, AT CONTINENTAL-RE CEO ROUNDTABLE
on the sub-theme: “Recapitalisation: Timelines, Target and Strategic Implication.”

Nigeria’s insurance sector stands at a defining moment. While we have made progress in regulatory reforms and market development, the reality remains that this industry is still
undercapitalised and underpenetrated. Insurance penetration hovers below 1 percent of GDP, behind global and even regional averages.
As the World Bank reminds us, “Financial resilience is not a luxury; it is a necessity for sustainable development.” Recapitalisation is not just a compliance exercise; it is a strategic
imperative. But let me emphasize: resilience requires more than capital. The goal is no longer just solvency; it is about building the capacity to withstand shocks, adapt to change, and
thrive in uncertainty.

Under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and the Guidelines issued by NAICOM, the Minimum Capital Requirements are: N10 billion for Life Insurers, N15 billion for Non-Life Insurers, and N35 billion for
Reinsurers.

We have also set very clear compliance timelines:
• 30th September 2025: Submission of recapitalization plans
• 10 working days after month-end: Monthly progress reports
• November 2025 – June 2026 for Capital verification
30th July 2026 as the Final compliance deadline and issuance of licence to companies that have complied with the MCR.
• Followed by commencement of RBC implementation for companies that have fulfilled the MCR, with adequate transition timelines given for compliance.
These timelines are firm. They reflect our commitment to a transparent, orderly, and riskbased transition to a stronger capital regime.
Above all, in order to protect the integrity of the exercise, the Commission has resolved to utilize
the Big 4 Auditing Firms for the capital verification exercise, in order to leverage on the collective expertise, capacity, experience and reputation, so that every company that is so adjudged as having fulfilled the MCR will be so indeed.
Strategic Implications
Recapitalization is the foundation for growth, not the finish line. It will:
i) Strengthen solvency and underwriting capacity thereby enabling insurers to write bigger tickets and retain more risk locally.
ii) Build public and investor confidence thus attracting capital and partnerships.
iii) Encourage mergers and acquisitions thereby fostering scale and operational efficiency.
iv) Position Nigerian insurers for regional competitiveness, especially under the African Continental Free Trade Area (AfCFTA).
AfCFTA opens a continental market of over 1.3 billion people. With stronger balance sheets, Nigerian insurers can seize cross-border opportunities, develop regional products, and
participate in large infrastructure and trade-related risks. Recapitalisation is the passport to that future.
Beyond Capital: Rethinking Risk and Building Capacity
Let me reiterate that capital is the floor, not the ceiling. To achieve resilience, we must:
• Address emerging risks such as climate change, cyber threats, health crises, supply chain disruptions, and political volatility.
• Develop local data and risk models suited to Nigeria’s realities.
• Embed ESG and sustainability principles in underwriting and investment.
• Move from being mere risk transferors to risk managers and mitigators.
Capacity building must extend beyond financial capital to human capital, that is, technical
skills, leadership, actuarial and innovation mindset. Capacity must also extend to technological capacity such as, catastrophe modelling, insurtech adoption, data analytics, and
digital distribution. As the African Insurance Organization noted recently, “The future of African insurance will be digital, data-driven, and customer-centric.
Collaboration: The Game Changer
Recapitalization will reshape the industry. It will lead to strategic mergers and acquisitions,
creating stronger entities. But collaboration must go further:
• Reinsurance partnerships should evolve from transactional to strategic.
• Public-private partnerships can drive inclusive insurance and deepen penetration.
• Regulators, insurers, reinsurers, and other stakeholder must work together to mobilize capital and expertise.
• Under AfCFTA, we must leverage regional platforms for cross-border growth, harmonising standards and unlocking scale.
Path to Resilience
Our ultimate goal is competitiveness and adaptability, not mere compliance. This requires transparency and trust, especially in claims settlement, alignment of policy, capital, and
innovation to support national economic stability, and a shared commitment to transform insurance from a peripheral service to a central pillar of Nigeria’s economic resilience.

Together, let us move beyond solvency to resilience, beyond compliance to competitiveness,
and beyond borders to continental leadership, and above all, beyond MCR to RBC.