The funds were placed in escrow accounts with the apex bank during the exercise to enable checks on their sources and ensure compliance with applicable financial regulations.

The Chairman of the Nigerian Insurers Association (NIA), Ebelechukwu Nwachukwu, disclosed the development during a virtual briefing on the outcome of the Insurers’ Committee meeting.

Nwachukwu said the National Insurance Commission (NAICOM), the industry regulator, had completed its part of the process and instructed the CBN to return the funds to the companies’ original accounts. However, the insurers are still working to satisfy the bank’s verification requirements.

She expressed hope that the process would be completed before the end of October, allowing the affected companies to gain access to the capital they raised.

The funds had initially been expected to become available by the end of September. The delay has left participating insurers waiting to deploy the additional capital towards business expansion and improved financial performance.

The recapitalisation exercise was introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 to strengthen the financial capacity of insurance and reinsurance companies, improve their ability to meet claims obligations and support their participation in larger commercial transactions.


Under the revised minimum capital requirements, life insurance companies are required to maintain at least ₦10 billion in capital, while non-life insurers must meet a ₦15 billion threshold. Reinsurance companies are required to maintain a minimum of ₦35 billion.

Not every company needed to raise additional funds. Some insurers already met the new requirements, while others raised fresh capital to bridge the gap between their existing resources and the revised thresholds.

NAICOM announced in August that the recapitalisation exercise had reached a major milestone, with 43 insurance and reinsurance companies confirmed to have met the prescribed minimum capital requirements at that stage. Additional companies were subsequently considered for licensing following verification.


The regulator has also emphasised that stronger capitalisation must translate into better financial management, improved policyholder protection and more effective claims settlement.

For insurers that raised fresh funds, access to the money is important for putting their capital plans into operation. The industry has indicated that the additional resources could support stronger underwriting capacity, enable companies to retain more risks locally and improve their ability to cover businesses operating in sectors such as infrastructure, energy and manufacturing.

However, the CBN’s verification process remains a key step before the money can be returned. The funds are expected to go back to the accounts from which they were originally transferred once the required checks are completed.


The eventual release of the funds will mark another stage in the recapitalisation programme, but the industry’s longer-term test will be whether the stronger capital base leads to improved service delivery, greater public confidence and more reliable protection for policyholders.


Reporting by TalkNaija Media