More than 70% of insurance companies in Nigeria have completed the independent verification exercise mandated under the industry’s recapitalisation programme. This progress comes as operators race to meet the July 31, 2026 deadline set by the National Insurance Commission (NAICOM).

Mrs. Ebelechukwu Nwachukwu, Chairman of the Nigerian Insurers Association (NIA), disclosed this update during an interview with the News Agency of Nigeria (NAN) on Monday in Abuja. She affirmed that the recapitalisation programme has now entered its final stage.

Nwachukwu noted that most insurance companies have completed the critical independent verification of their capital positions. She stated, “We have all paid for these processes, and my company has been verified. More than 70 per cent of the companies have completed the verification exercise.”

Since December 2025, insurers have been submitting monthly reports to NAICOM, detailing changes in their capital positions from business activities, claims settlements, and asset transactions. This allows the regulator to monitor compliance throughout the exercise.

Insurers were also required to lodge statutory deposits with the Central Bank of Nigeria (CBN) amounting to 10% of the new minimum capital requirement. The majority of member companies have already met this obligation and submitted evidence to the regulator.

Independent verification is being conducted by auditors from the Big Four accounting firms, including KPMG, PwC, Deloitte, and EY. NAICOM is expected to announce the outcome of the recapitalisation exercise after the July 31 deadline.

The recapitalisation exercise, introduced by NAICOM, aims to strengthen the financial capacity of insurance companies by ensuring they meet higher minimum capital requirements. This initiative is designed to improve the industry’s resilience and ability to settle claims, enhance capacity to underwrite larger risks, boost public confidence, and position Nigerian insurance companies to compete more effectively both locally and internationally.

NAICOM has maintained that the July 31, 2026 recapitalisation deadline is final, ruling out any extension for insurance companies yet to meet the revised capital requirements. In May, the Commissioner for Insurance, Olusegun Omosehin, affirmed NAICOM’s commitment to preventing the collapse of any licensed insurance company in Nigeria.

The recapitalisation exercise follows the enactment of the Nigerian Insurance Industry Reform Act, 2025, signed into law by President Bola Ahmed Tinubu in August 2025. This legislation significantly increased the minimum capital thresholds across the industry.

Under the new regime, non-life insurers are required to raise their minimum capital from N3 billion to N15 billion. Life insurers must increase theirs from N2 billion to N10 billion, while reinsurers are mandated to raise capital from N10 billion to N35 billion.

In a significant development, Linkage Assurance Plc announced it had successfully completed a N16.2 billion Rights Issue. This capital raise enables the company to meet NAICOM’s minimum capital requirement before the July 31, 2026 deadline.

The Rights Issue, which opened on March 11, 2026, and closed on April 23, 2026, was undertaken in response to NAICOM’s directive. The Securities and Exchange Commission (SEC) has approved the allotment of all shares offered under the Rights Issue, and the newly issued shares have been listed on the Nigerian Exchange Limited (NGX).

Linkage Assurance stated that the capital raise was fully subscribed, reflecting investor confidence in the company’s management, governance standards, financial performance, and strategic direction. The proceeds will be used to satisfy the new minimum capital requirement and support business expansion initiatives.

For the 2025 financial year, Linkage Assurance reported a pre-tax profit of N4.3 billion, a decline from N5.2 billion in the previous year. Despite this, the company posted strong revenue growth, with insurance revenue rising by 24.1% year-on-year to N27.5 billion, compared with N22.2 billion in 2024. Premium income also increased by 15.8% to N27.8 billion, while claims paid climbed to N5.9 billion, reflecting increased underwriting activity during the year.