NAICOM

Operators in the Nigerian insurance industry got a breather on Monday with the extension of the deadline for the recapitalisation of their businesses from June 30, 2020 to December 31, 2020.

The National Insurance Commission (NAICOM) has announced the extension of the deadline in a  Circular signed by Mr Pius Agboola, Director, Policy and Regulation, NAICOM for the Acting Commisioner for Insurance, Mr Sunday Thomas on Monday.

Agboola said the decision for the extension of the deadline followed a review of the recapitalisation plans submitted by the operators and various levels of the compliance observed, according to a copy of the circular made available to the News Agency of Nigeria (NAN) in Lagos on Monday.

“This circular is in furtherance to our earlier circulars referenced NAICOM/DPR/CIR/25/2019 dated May 20, 2019 and NAICOM/DPR/CIR/25-01/2019 dated July 23, 2019 on the above subject matter.

“The Commision has reviewed the recapitalisation plans submitted by operators and various levels of
compliance observed.

“Similarly, it has noted the inputs from the various engagements with relevant stakeholders.

” The Commission therefore hereby extends the recapitalisation deadline to Dec. 31, 2020, ” he said.

Agboola explained that the Central Bank of Nigeria (CBN) has obliged the Commission with the Recapitalisation Escrow Account (T24) for the deposit of fresh funds raised for recapitalisation.

The Director stated that as part of the measures to ease the recapitalisation exercise, some of
the relevant agencies had set up Help Desk to fast track processing of application for ‘NoObjection’
and for approvals.

“Engagements with these Agencies on other palliatives are ongoing, ” Agboola stated.

NAICOM, in exercise of its statutory powers and regulatory functions, had on May 20 reviewed the minimum paid-up share capital requirement for all classes of insurers , i.e Insurance and Reinsurance companies.

The directive was with the exception of Takaful operators and Micro-insurance companies doing business in Nigeria.

Following the reviewed minimum capital requirement, the existing minimum paid – up capital share of Life Insurance business was reviewed and raised from N2 billion to N8 billion.

General Insurance business was raised from N3 billion to N10 billion, Composite business was raised from N5 billion to N18 billion and Reinsurance business was raised from N10billion to 20 billion .

The new paid-up share capital requirement takes immediate effect for new applications made to NAICOM by companies seeking to carry on insurance business in Nigeria.