About ₦300 billion raised by Nigerian insurance companies during a recapitalisation exercise remains locked in escrow accounts with the Central Bank of Nigeria (CBN), as the affected firms undergo stringent verification checks over suspected illicit fund inflows.
The funds were raised by 24 insurance companies as part of efforts to strengthen their financial capacity under Nigeria’s new insurance industry reform framework. However, concerns over the possible sources of some investments have reportedly complicated the process of releasing the money.
Although the National Insurance Commission (NAICOM) has approved the release of the funds, the affected companies are still working to meet the CBN’s requirements.
Speaking during a virtual briefing following an Insurers Committee meeting, the Chairperson of the Nigerian Insurers Association, Ebelechukwu Nwachukwu, said the industry regulator had completed its part of the process, while insurance operators were addressing the apex bank’s criteria.
The companies had planned to deploy the fresh capital in the third quarter of 2026 to improve their financial performance and reward investors who supported the recapitalisation exercise.
The affected firms collectively raised approximately ₦300 billion, which, alongside the industry’s existing capital of more than ₦700 billion, has increased total industry capital to about ₦1.079 trillion.
Under the Nigerian Insurance Industry Reform Act 2025, participating insurers were required to keep their recapitalised funds in escrow accounts with the CBN following the exercise, which ended on 31 July 2026.
Of the 50 insurance companies that met the recapitalisation requirements, 24 raised additional capital, while 26 had already exceeded the prescribed minimum thresholds.
The new requirements raised the minimum capital for life insurance companies from ₦2 billion to ₦10 billion, non-life insurers from ₦3 billion to ₦15 billion, and reinsurers from ₦10 billion to ₦35 billion.
NAICOM Commissioner for Insurance and Chief Executive Officer, Olusegun Omosehin, has said the regulator intends to ensure that the funds are used for their intended purposes. He also pledged continued monitoring to prevent mismanagement or diversion of the capital.
The delay in accessing the funds could affect insurers’ plans to expand operations, strengthen their balance sheets and improve returns to shareholders.
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