Economy
NIIRA: How Insurance Recapitalisation Is Unlocking Stronger Investment Returns
NIIRA: How Insurance Recapitalisation Is Unlocking Stronger Investment Returns
NIIRA: How insurance eecapitalisation is unlocking stronger investment returns. Nigeria’s insurance sector is entering a new phase of capital strength following the introduction of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which mandates higher minimum capital requirements for operators.
Beyond regulatory compliance, this wave of recapitalisation is reshaping insurers’ balance sheets, expanding their investment capacity and opening new pathways for stronger, more sustainable investment returns for shareholders and institutional investors alike.
The National Insurance Commission (NAICOM) has consequently set new minimum capital thresholds across the industry: N10 billion for life insurers, N15 billion for non-life insurers, N25 billion for composite insurers and N35 billion for reinsurers. The ongoing recapitalisation exercise is scheduled to conclude on July 30, 2026, giving operators a defined timeline to strengthen their capital base and reposition for growth.
As a result, several insurers have already approached shareholders for capital injections, while others are exploring strategic partnerships, rights issues, and potential mergers to meet the new regulatory thresholds and strengthen their market position.
The recapitalisation drive is expected to increase Investment Capacity with insurers with stronger balance sheets can invest in more substantial and diverse portfolios, potentially generating higher returns.
It will also improve governance and risk management: Enhanced capital requirements promote better governance and risk management practices, reducing the likelihood of insolvency and increasing investor confidence.
To expand insurance penetration: A more robust insurance sector can lead to increased insurance penetration, driving economic growth and creating new investment opportunities.
Looking at key insurance stocks to watch, capital market analysts have said that some insurance stocks that have rallied include: AIICO Insurance, Mutual Benefits Assurance, AXA Mansard Insurance, Linkage Assurance and Cornerstone Insurance.
The commissioner for Insurance/chief executive officer of NAICOM, Segun Omosehin, said the commission’s focus is to build a stronger, more credible insurance market that can protect policyholders and attract long-term investment.
“The recapitalisation and market conduct reforms are designed to ensure that insurance companies are financially sound, well governed and capable of meeting their obligations to policyholders. This will ultimately strengthen confidence in the industry,” Omosehin said.
A senior stockbroker, Tunde Oyediran emphasized that investors who truly understand the dynamics of the capital market must practice patience when it comes to their investments in companies, saying that “those who remain steadfast will likely see significant improvements in their investment portfolios over time.”
He encouraged a long-term perspective, stating, “the key is to stay committed to your company.”
Oyediran also highlighted the substantial untapped potential within the insurance sector, noting that “many Nigerians remain hesitant when it comes to embracing insurance products. This hesitation is a major concern, as effective legislation and enforcement could unlock the industry’s vast capabilities.”
He pointed out that a growing number of insurance firms are now diversifying their operations into various financial sectors, such as asset management and fintech, to solidify and enhance their income streams.
He stated that when the financial performance of these companies improves significantly, the benefits will inevitably extend to their investors in the form of better earnings and attractive dividends.
He mentioned several high-performing stocks in the market, including Custodian Investment Plc, NEM Insurance, Mansard Insurance, and Sunu Assurances, which are currently grabbing the attention of savvy investors seeking growth opportunities.
Investing Smarter Via Insurance Recapitalisation
To capitalize on this opportunity, investors should:
* Monitor insurance stocks and their recapitalisation progress.
* Consider investing in insurers with strong capital positions and growth potential.
* Diversify portfolios to include insurance sector investments.
Money Market
To finance the 2026 budget, the Chief Executive of CFG Advisory, Tilewa Adebajo, has urged the Federal Government to sell off part of its stake in its Joint Venture (JV) assets.
Speaking with journalists during the Finance Correspondents Association of Nigeria (FICAN) 2026 Economic Outlook, the economist warned that Nigeria’s current debt trajectory is unsustainable.
Adebajo who also projected that economic growth could exceed five per cent by the end of the year if urgent fiscal and structural reforms are implemented, said Nigeria’s debt profile, estimated at over $100 billion, poses a serious risk to macroeconomic stability.
Real Estate
The surging cost of house rents across Lagos, Ogun, Abuja, Port Harcourt, Asaba and other major Nigerian cities, amid largely stagnant incomes, is pushing many middle-class Nigerians into severe financial distress and, in some cases, homelessness.
Findings indicate that the cost of renting apartments and renewing leases in Lagos and its neighbouring Ogun communities has risen by more than 200 per cent in the past few years, deepening the housing burden on residents.
Market surveys show that rents for residential flats and small commercial spaces have jumped by over 90 per cent in several Lagos locations, including Lekki, Ajah, Surulere, Festac, Amuwo-Odofin, Apapa and Victoria Island.
Similarly, rents in suburban communities such as Ikotun, Ikorodu, Egbeda, Iyana-Ipaja, Agege, Abule-Egba and Ojodu-Berger have climbed sharply, moving beyond the affordability threshold of lower-income earners.
Eid-el-Fitr: NRC Sets To Run Three Lagos–Ibadan Train Trips Monday
Eid-el-Fitr: NRC sets to run three Lagos–Ibadan train trips Monday. He assured passengers of NRC’s continued commitment to safe, reliable, and efficient rail services.
This was contained in a statement issued on Friday in Lagos by NRC chief public relations officer, Callistus Unyimadu.
He said the additional trip was in response to high passenger turnout during the Eid-el-Fitr travel period.
“The extra trip is aimed at easing passenger movement and providing more travel options for commuters returning after the Eid-el-Fitr celebrations.
“Under the schedule, departures from Lagos (Mobolaji Johnson Station, Ebute Metta) will be at 7.45 a.m., 1.40 p.m., and 4.00 p.m.
“From Ibadan (Obafemi Awolowo Station, Moniya), trains will depart at 8.00 a.m., 10.50 a.m., and 4.30 p.m.,” he said.
Mr Unyimadu assured passengers of NRC’s continued commitment to safe, reliable, and efficient rail services.
NRC Sets To Run Three Lagos–Ibadan Train Trips Monday
He advised travellers to arrive early, comply with ticketing and security procedures, and plan their journeys.
“The corporation appreciates the continued patronage of its services and wishes all passengers a safe and pleasant journey,” he added.
UBA, BII Sign Letter Of Intent To Explore Trade Finance Collaboration Across Africa
United Bank for Africa (UK) Limited (“UBA UK”) and British International Investment plc (“BII”), the UK’s development finance institution and impact investor, announced that they have signed a letter of intent to develop trade finance collaboration opportunities.
The proposed initiative aims to expand access to trade and working capital facilities for businesses operating across Africa.
Access to trade finance remains one of the most significant structural constraints on African trade. Businesses, particularly small and medium-sized enterprises, are frequently unable to secure letters of credit, guarantees, and supply chain finance on commercially viable terms, limiting their capacity to export and import competitively. This trade finance gap is estimated by the African Development Bank to be over USD 80 billion annually.
To help close this gap, UBA UK, the London subsidiary of UBA Group, Africa’s Global Bank, will leverage its deep relationships across the Group’s 20-country African network to originate and structure trade finance transactions. While BII, with a mandate to support productive, sustainable, and inclusive growth across Africa, can support transactions that might otherwise fall outside conventional commercial appetite.
“The signing of this letter with BII represents a landmark moment for UBA UK and for the UBA Group’s global ambitions. As the Group’s hub for Trade Operations, UBA UK is uniquely positioned to connect African businesses with the international financial system. Working alongside BII, we can extend that capability further — mobilising capital where it matters most and helping to close the trade finance gap that holds back so much African potential,” said Lok Mishra, Chief Executive Officer, UBA UK
“British International Investment is committed to catalysing private sector growth across Africa, and trade finance is a critical enabler of that growth. We welcome the opportunity to collaborate with UBA Group, whose pan-African network and deep institutional relationships can help advance our ambition to expand access to trade and working capital finance, particularly in frontier markets,” Chris Chijiuitomi, Managing Director and Head of Africa
The announcement builds on growing momentum around intra-African trade facilitated by the African Continental Free Trade Area (AfCFTA), which entered into force in 2021 and represents one of the world’s most significant trade integration initiatives. Both institutions have identified the operationalisation of AfCFTA as a priority catalyst for a trade finance facility, with UBA UK’s network across major AfCFTA economies offering a basis for supporting businesses navigating the emerging continental market.
This also complements the UK Government’s broader engagement with African economic development, including commitments made at the UK-Africa Investment Summit, and reinforces the City of London’s role as a leading international finance centre for Africa-focused capital mobilisation.
Future cooperation remains subject to further assessment, due diligence and the completion of internal approvals by both parties.
ABOUT UNITED BANK FOR AFRICA (UK) LIMITED
UBA UK is the London-based subsidiary of United Bank for Africa Plc, one of Africa’s leading financial institutions with operations across 20 African countries, the United Kingdom, the United States of America, France, and the United Arab Emirates. UBA UK serves as the Group’s hub for Trade Operations, providing a comprehensive suite of trade finance, treasury, and correspondent banking services to institutional and corporate clients worldwide.
UBA
ABOUT UNITED BANK FOR AFRICA GROUP
United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group-wide and serving over 45 million customers globally. Operating in twenty African countries, the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting-edge technology.
ABOUT BRITISH INTERNATIONAL INVESTMENT
British International Investment is the UK’s development finance institution and impact investor. The organisation invests in businesses in developing countries to improve people’s lives and help protect the planet. BII’s work targets the underlying causes of poverty and the climate crisis, helping countries break free from aid dependency for good.
Between 2022-2026, at least 30 per cent of BII’s total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge which has raised over $33.6 billion to empower women’s economic development.
The company has investments in over 1,600 businesses across 66 countries and total net assets of £9.87 billion. For more information, visit: www.bii.co.uk | watch here. Follow British International Investment on LinkedIn, Bluesky and X.
Eid-el-Fitr: President Tinubu Felicitates Muslims, Urges Renewed Unity, Patriotism
Eid-el-Fitr: President Tinubu felicitates Muslims, urges renewed unity, patriotism. Mr Tinubu called on Muslims to reflect on the spiritual lessons of Ramadan.
The president urged them to renew commitment to national unity, peaceful coexistence, and service to humanity as they celebrate the festival across the country on Friday.
This is contained in a statement issued by presidential spokesperson, Bayo Onanuga, on Thursday in Abuja.
Mr Tinubu called on Muslims to reflect on the spiritual lessons of Ramadan, noting that the holy month teaches discipline, sacrifice, compassion, and devotion to God and humanity.
He said: “We have a lot to draw from the noble lessons of Ramadan, especially at a time like this.
“We must continue to abide by the virtues of piety, selflessness, perseverance, kindness and compassion beyond this period.”
The president emphasised the need for Nigerians to remain united across religious and ethnic lines, stressing that national cohesion remains vital for sustainable peace and development.
He urged Muslims to extend acts of kindness and charity to the less privileged, irrespective of religious or ethnic background, in line with the enduring values of Islam.
Mr Tinubu noted that such gestures would strengthen social bonds, promote inclusiveness, and reinforce the spirit of brotherhood that defines the Nigerian society.
The president also called on religious leaders to use the occasion to offer prayers for peace, stability, and economic prosperity across the country.
Tinubu
He expressed optimism that with collective efforts, Nigeria would overcome its challenges and achieve lasting progress for the benefit of all citizens.
Mr Tinubu wished Muslims a joyous celebration, praying that the blessings of Ramadan would bring renewed hope, strength, and guidance to individuals, families, and the nation.
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