NAICOM gives up its recapitalization policy

The National Insurance Commission (NAICOM), the insurance regulator, has abandoned its policy of recapitalizing insurance companies in Nigeria.

On 27th, August 2018, the commission had announced the increase in the minimum capital of life, non-life and composite insurance companies. The latter had to meet this requirement before the deadline set by the NAICOM for October 1st, 2018.

Insurers rejected this request for the raise in the capital and started a legal action against the commission. Some insurance companies’ shareholders even went as far as suing NAICOM at the Federal High Court in Lagos.

Faced with this general outcry, the authorities were forced to back out and suspend the implementation of the recapitalization.

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