Chiamaka Ajeamo

With six months left to realise the insurance industry June 2020 recapitalisation plan,  the National Insurance Commission (NAICOM) has extended the deadline for all insurance and reinsurance companies in the country to December 31, 2020.

The commission disclosed this in a circular signed by its Director, Policy and Regulations Directorate, Pius Agboola, titled “Minimum Paid-Up Share Capital Policy for Insurance and Reinsurance companies in Nigeria,” stating that the   decision was taken after a critical review of the recapitalisation plans submitted by operators and various levels of compliance observed.

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The statement reads: “This circular is in furtherance to our earlier circulars referenced NAICOM/DPR/CIR/25/2019 dated May 20, 2019 and NAICOM/DPR/CIR/25-01/2019 dated July 23, 2019, on the above.

“The commission has reviewed the recapitalisation plans submitted by operators and various levels of compliance observed. Similarly, it has noted the input from the various engagements with relevant stakeholders. The commission, therefore, hereby extends the recapitalisation deadline to December 31, 2020.”

NAICOM further stated that the Central Bank of Nigeria (CBN) has obliged it with the recapitalisation escrow accounts (T24) for the deposit of fresh funds raised for the recapitalisation with the details: T24 Account Name: Recapitalisation Escrow – NAICOM and T24 Account No. 0230164061014.

NAICOM added that as part of the measures to ease the recapitalisation, some of the relevant agencies had set up help desk to fast track processing of applications for ‘No Objection’ and for approvals, stressing that engagements with the agencies on other palliatives were on going.

Recall that NAICOM had set June 30, 2020, as recapitalisation deadline for all existing insurance and reinsurance companies  save Takaful and micro insurance companies in Nigeria.

The sector regulator stipulated that the minimum paid-up share capital for life insurance companies should be increased from N2 billion to N8 billion, general business insurance companies from N3 billion to N10 billion, composite business insurance companies from N5 billion to N18 billion and reinsurance companies from N10 billion to N20 billion.