News – Page 34 – National Daily Newspaper

After 50 days of fear, Oyo Principal’s family tells story of faith, survival

After 50 days of fear, Oyo Principal’s family tells story of faith, survival

For more than seven agonizing weeks, Professor Wole Alamu lived each day torn between hope and despair as his wife, Mrs. Rachael Alamu, principal...

NCC, REA partner to expand digital connectivity, electricity access in underserved communities

Business3 weeks ago

NCC, REA partner to expand digital connectivity, electricity access in underserved communities

The Nigerian Communications Commission (NCC) and the Rural Electrification Agency (REA) have signed a Memorandum of Understanding (MoU) aimed at strengthening collaboration between the...

Nigeria left out as UK expands simplified student visa scheme

Latest3 weeks ago

Nigeria left out as UK expands simplified student visa scheme

The United Kingdom has included Botswana, Mauritius and Tunisia among countries whose citizens can apply for a UK Student visa without submitting proof of funds...

Igbo leader Mkparu, Praises Gov Mutfwang, criticizes Dalung over apology controversy

News3 weeks ago

Igbo leader Mkparu, Praises Gov Mutfwang, criticizes Dalung over apology controversy

By Kingsley Chukwuka A prominent Igbo leader, political figure, and CEO of Nelmaco Industries, Amb. Chief Dr. Ubachidebere Nelson Mkparu, has offered strong praise for...

Over 70% of Nigerian Insurers Clear Capital Verification as NAICOM Recapitalisation Deadline Nears Experts Say Stronger Capital Base Will Boost Claims Payment, Spur Industry Consolidation More than 70 per cent of insurance companies in Nigeria have successfully completed the independent verification process required under the National Insurance Commission's (NAICOM) recapitalisation programme, signaling significant progress as the industry races to meet the July 31 regulatory deadline. The development was disclosed by the Chairman of the Nigerian Insurers Association (NIA), Mrs. Ebelechukwu Nwachukwu, during an interview with the News Agency of Nigeria (NAN) in Abuja on Monday. According to Nwachukwu, the industry-wide recapitalisation exercise has entered its final phase, with the majority of insurers already fulfilling one of the programme's most critical requirements—the independent verification of their capital positions. "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," she said. The recapitalisation programme, introduced by NAICOM under the Nigerian Insurance Industry Reform Act, 2025, is designed to strengthen the financial health of insurance companies by raising minimum capital requirements. Regulators believe the initiative will improve insurers' ability to settle claims promptly, underwrite larger risks, and restore public confidence in Nigeria's insurance industry. Monthly Capital Monitoring Nwachukwu explained that since December 2025, insurance companies have been submitting monthly capital position reports to NAICOM, reflecting changes arising from underwriting activities, claims payments, investments, and asset transactions. The reports, she noted, have enabled the regulator to closely monitor each company's compliance journey ahead of the July 31 deadline. In addition, insurers were required to lodge statutory deposits with the Central Bank of Nigeria (CBN) amounting to 10 per cent of the revised minimum capital requirement. According to the NIA chairman, most member companies have complied with the statutory deposit requirement and have submitted evidence of payment to NAICOM. She added that the capital verification exercise is being conducted by independent auditors from the global accounting firms KPMG, PwC, Deloitte, and EY, while the insurance regulator is expected to announce the final outcome of the recapitalisation exercise after the compliance deadline. Industry Poised for Transformation Nwachukwu said NAICOM has continued engaging insurers still facing capital shortfalls in a bid to ensure an orderly transition that safeguards policyholders and preserves financial stability within the sector. She expressed optimism that the exercise would ultimately produce a stronger, more resilient insurance industry capable of supporting Nigeria's growing economy. The recapitalisation drive has already encouraged several companies to raise fresh capital through rights issues, private placements, mergers, acquisitions, and strategic partnerships. One of the latest companies to achieve compliance is Linkage Assurance Plc, which announced on Monday that it had successfully completed a ₦16.2 billion Rights Issue, enabling it to meet NAICOM's revised capital threshold ahead of the deadline. Industry analysts expect more consolidation across the sector, with financially weaker operators likely to pursue mergers or acquisitions rather than lose their operating licences. NAICOM Rules Out Deadline Extension NAICOM has consistently maintained that the July 31, 2026 deadline remains non-negotiable, dismissing speculation that operators would be granted additional time to comply. Earlier this year, the Commissioner for Insurance, Olusegun Omosehin, assured stakeholders that while the commission remains committed to protecting policyholders and preventing the collapse of licensed insurers, companies must meet the revised capital requirements under the new regulatory framework. The new capital thresholds represent one of the most significant reforms in Nigeria's insurance sector in decades. Under the Nigerian Insurance Industry Reform Act, 2025: Non-life insurance companies are required to increase their minimum capital from ₦3 billion to ₦15 billion. Life insurance companies must raise their capital base from ₦2 billion to ₦10 billion. Reinsurance companies are expected to increase minimum capital from ₦10 billion to ₦35 billion. Experts: Stronger Insurers, Better Protection for Policyholders Insurance and financial market experts say the recapitalisation programme could reshape Nigeria's insurance landscape by producing fewer but stronger operators capable of competing regionally and globally. Financial analyst Johnson Chukwu said stronger capitalisation would improve insurers' ability to absorb shocks arising from large claims and catastrophic events while enhancing confidence among corporate and retail customers. According to him, better-capitalised insurance companies are also more attractive to international investors and reinsurers, creating opportunities for increased foreign investment and improved underwriting capacity. Insurance consultant Dr. Pius Apere noted that consolidation through mergers and acquisitions should not be viewed negatively, arguing that it would produce healthier institutions with stronger governance structures and improved operational efficiency. He added that the reform could also accelerate innovation in insurance products, digital transformation, and risk management practices, enabling insurers to serve a broader segment of the Nigerian economy. However, experts caution that recapitalisation alone will not solve the industry's longstanding challenges. They argue that regulators and operators must also intensify efforts to improve insurance penetration, strengthen consumer education, enforce compulsory insurance policies, deepen technology adoption, and ensure prompt settlement of claims if the industry is to fully realise the benefits of the capital reform. With only days remaining before the regulatory deadline, the coming weeks are expected to determine which insurers emerge independently, which pursue strategic alliances, and how the recapitalisation exercise ultimately reshapes Nigeria's insurance industry for the next decade.

Business3 weeks ago

The Solar Gold Rush: Why Nigerian businesses are betting on renewable energy

As energy costs continue to rise and squeeze profits, businesses are discovering that their greatest competitive advantage may be shining from above. By Arthur Eriye...

Illegal street racing turns deadly as trader killed near IMSU junction [VDEO]

Crime3 weeks ago

Illegal street racing turns deadly as trader killed near IMSU junction [VDEO]

A suspected illegal street racing event ended in tragedy on Sunday evening after a trader identified as Chibuike was reportedly struck and killed by...

Sambo calls for political reforms, says Tinubu-Atiku rivalrya distraction

Latest3 weeks ago

Sambo calls for political reforms, says Tinubu-Atiku rivalry a distraction

As political campaigns ahead of the next election season gather momentum, Arise News Political Editor Sumner Sambo has urged Nigerians to shift their attention...

Three students rescued as Hostel collapses at Federal Polytechnic Oko

Latest3 weeks ago

Three students rescued as hostel collapses at Federal Polytechnic Oko [video]

Three students have been rescued after a students’ hostel collapsed at the Federal Polytechnic, Oko, in Anambra State, triggering an emergency response involving rescue...

Inside Nigeria's growing education inequality

Education3 weeks ago

Inside Nigeria’s growing education inequality

The introduction of Nigeria’s student loan scheme has intensified debate over the country’s education system, with activist and 2027 presidential hopeful Omoyele Sowore accusing...

Obi says high interest rates crippling SMEs, promises cheaper credit

Latest3 weeks ago

Obi says high interest rates crippling SMEs, promises cheaper credit

The presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has pledged to reduce interest rates if elected president in 2027, arguing that Nigeria’s current...