⏳ No Room for Errors: NAICOM Tightens the Screws on Insurers Amid Recapitalisation Drive
Nigeria’s insurance regulator, the National Insurance Commission (NAICOM), has sent a strong warning to insurance companies over weak financial disclosures, solvency gaps, and poor recapitalisation planning, stressing that 2026 is not a year for avoidable mistakes or delays.
Why this matters
The warning comes at a critical time when the insurance industry is undergoing a major recapitalisation exercise, one that will determine which companies are financially strong enough to operate going forward. According to NAICOM, there is little tolerance for repeated errors, especially as regulatory timelines are now very tight ⏱️.
Where the concerns came from
These issues were highlighted during a one-day stakeholders’ session in Lagos, jointly organised by NAICOM and the Nigerian Insurers Association (NIA). The meeting brought together finance, audit, compliance officers, actuaries, auditors, and consultants across the industry .
The session was triggered by problems identified in insurers’ 2024 audited financial statements, including:
• Weak or incomplete disclosures
• Poor reconciliation in notes to accounts
• Capital shortfalls
• Delays caused by repeated corrections
NAICOM’s message: fix it early
Dr Emmanuel Otitolaiye, Chairman of the NIA Accounting Technical Committee, explained that the goal is not punishment, but early correction. Insurers are expected to apply lessons from the 2024 review to their 2025 financial statements, so regulatory approvals can be faster and smoother.
He emphasized that with recapitalisation ongoing, financial statements cannot keep bouncing back and forth for corrections—time is simply not on anyone’s side ⏳.
Industry and regulator alignment
The Director-General of the NIA, Bola Odukale, noted that continuous engagement between insurers and NAICOM has helped strengthen trust and collaboration, which is crucial during this reform period.
On NAICOM’s part, Mrs Oluwatoyin Charles, Director of Supervision, reaffirmed the Commission’s commitment to building a strong, solvent, and trustworthy insurance industry, especially under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
She described the recapitalisation exercise as a turning point designed to:
• Improve solvency
• Strengthen risk-bearing capacity
• Boost public confidence
• Position insurers for long-term, sustainable growth
IFRS 17 under the spotlight
NAICOM also raised concerns about poor financial reporting under IFRS 17, warning that weak disclosures:
• Undermine investor and public confidence
• Delay regulatory approvals
• Raise red flags about governance and transparency
Mrs Charles stressed that financial integrity is a promise, one that insurers must keep if the industry is to earn trust and remain stable.
Common errors slowing approvals
Providing further clarity, NAICOM’s Senior Financial Analyst, Mr Gabriel Oloba, pointed out recurring issues such as:
• Inconsistent figures in financial notes
• Weak reconciliation processes
• Inadequate disclosure of recapitalisation details
He urged insurers to fully comply with requirements around Minimum Capital Requirement, Risk-Based Capital, Capital Adequacy, and the Solvency Control and Intervention Framework, noting that better reporting equals faster regulatory clearance ✅.
Bottom line
NAICOM’s stance is clear: recapitalisation is serious business. Insurers must improve transparency, fix disclosure gaps, and get their numbers right—quickly and correctly. In a year packed with reforms, there’s no luxury of time and no room for repeated mistakes .
Nigeria’s insurance regulator, the National Insurance Commission (NAICOM), has sent a strong warning to insurance companies over weak financial disclosures, solvency gaps, and poor recapitalisation planning, stressing that 2026 is not a year for avoidable mistakes or delays.
Why this matters
The warning comes at a critical time when the insurance industry is undergoing a major recapitalisation exercise, one that will determine which companies are financially strong enough to operate going forward. According to NAICOM, there is little tolerance for repeated errors, especially as regulatory timelines are now very tight ⏱️.
Where the concerns came from
These issues were highlighted during a one-day stakeholders’ session in Lagos, jointly organised by NAICOM and the Nigerian Insurers Association (NIA). The meeting brought together finance, audit, compliance officers, actuaries, auditors, and consultants across the industry .
The session was triggered by problems identified in insurers’ 2024 audited financial statements, including:
• Weak or incomplete disclosures
• Poor reconciliation in notes to accounts
• Capital shortfalls
• Delays caused by repeated corrections
NAICOM’s message: fix it early
Dr Emmanuel Otitolaiye, Chairman of the NIA Accounting Technical Committee, explained that the goal is not punishment, but early correction. Insurers are expected to apply lessons from the 2024 review to their 2025 financial statements, so regulatory approvals can be faster and smoother.
He emphasized that with recapitalisation ongoing, financial statements cannot keep bouncing back and forth for corrections—time is simply not on anyone’s side ⏳.
Industry and regulator alignment
The Director-General of the NIA, Bola Odukale, noted that continuous engagement between insurers and NAICOM has helped strengthen trust and collaboration, which is crucial during this reform period.
On NAICOM’s part, Mrs Oluwatoyin Charles, Director of Supervision, reaffirmed the Commission’s commitment to building a strong, solvent, and trustworthy insurance industry, especially under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
She described the recapitalisation exercise as a turning point designed to:
• Improve solvency
• Strengthen risk-bearing capacity
• Boost public confidence
• Position insurers for long-term, sustainable growth
IFRS 17 under the spotlight
NAICOM also raised concerns about poor financial reporting under IFRS 17, warning that weak disclosures:
• Undermine investor and public confidence
• Delay regulatory approvals
• Raise red flags about governance and transparency
Mrs Charles stressed that financial integrity is a promise, one that insurers must keep if the industry is to earn trust and remain stable.
Common errors slowing approvals
Providing further clarity, NAICOM’s Senior Financial Analyst, Mr Gabriel Oloba, pointed out recurring issues such as:
• Inconsistent figures in financial notes
• Weak reconciliation processes
• Inadequate disclosure of recapitalisation details
He urged insurers to fully comply with requirements around Minimum Capital Requirement, Risk-Based Capital, Capital Adequacy, and the Solvency Control and Intervention Framework, noting that better reporting equals faster regulatory clearance ✅.
Bottom line
NAICOM’s stance is clear: recapitalisation is serious business. Insurers must improve transparency, fix disclosure gaps, and get their numbers right—quickly and correctly. In a year packed with reforms, there’s no luxury of time and no room for repeated mistakes .