SEC creates insurance recapitalisation desk, promises approvals within 14 days says ICYMI

The Securities and Exchange Commission (SEC) says it has created a dedicated desk to fast-track approvals for insurance sector recapitalisation.

SEC said the commission will deliver decisions within 14 days of complete submissions.

Ebelechukwu Nwachukwu, head of the communication and stakeholders’ management sub-committee of the insurers’ committee, said in Lagos recently.

The development comes a few weeks after President Bola Tinubu signed into law the Nigerian Insurance Industry Reform Act 2025.

The act included a wide range of reforms, including a substantial increase in mini- mum capital requirements for insurance companies.

According to Nwachukwu, during his presentation, Emomotimi Agama, director-general (DG) of the SEC, charged insurance companies to leverage the opportunities just like the banks, which raised over N3 trillion to recapitalise their operations, while promising to ensure insurance companies do not incur huge costs in the course of raising funds at the exchange.

She also said Agama urged insurance operators not to consider the Nigerian Insurance Industry Reform Act (NIIRA) 2025 as a privilege to raise money, but as an opportunity to transform the insurance industry.

“There cannot be a better ally to the capital market than the insurance industry,” she said.

“He also acknowledged that this is the first time that the collaboration between NAICOM and SEC is happening, and it’s happening in a very strong manner.

“The key thing is, they’ve set up a dedicated desk for insurance companies, and all approvals that the SEC has committed to us are to be granted within 14 days, so long as we submit our applications to raise capital with all the required documents on time.”

Nwachukwu also said the SEC has given about nine concessions and reduced fees for the insurance sector’s recapitalisation process to attract similar inflows.

“NAICOM has released a draft of minimum capital requirement guidelines, which they require the insurance companies to comment on, and the comments have been sent,” Nwachukwu said.

“These comments will be considered, and the final guidelines will be released by NAICOM as soon as possible. They’ve also issued guidelines on Insurtech and issued guidelines on Takaful, basically to just guide the industry in these processes.

“NAICOM also encouraged organisations to begin sending the recapitalisation plans. So, they don’t only want to see the plans of how we plan to recapitalise, but they also want to see how we plan to utilise the funds that we generate before they will approve it.”