NAICOM Reviews, Extends Recapitalisation Deadline To Dec 2020

By LOVETH AZODO, Lagos

…..CBN Avails NAICOM With Escrow Account For Recapitalization Funds

The National Insurance Commission has extended the recapitalisation deadline for insurance and reinsurance companies to December 31, 2020.

In a circular signed by the Commission’s Director, Policy and Regulations, Pius Aghoola, it stated that the decision was taken after a critical review of the Recapitalisation plans submitted by operators and various levels of compliance observed.

It read, “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 July23, 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 inputs from the various engagements
with relevant stakeholders.The Commission therefore hereby extends the recapitalisation
deadline to December 31,2020.

“The Central Bank of Nigeria has obliged the Commission with the Recapitalisation Escrow
Account (T24) for the deposit of fresh funds raised for recapitalisation. Below are the details of
theT24 account:
T24 Account Name: Recapitalisation Escrow-NAICOM
T24 Account No: 0230164061014

“As part of the measures to ease there capitalisation exercise, some of the relevant agencies
have setup Help Desk to fast track processing of application for ‘No Objection’ and for
approvals.. Engagements with these agencies on other palliatives are ongoing.”

It would be Recall, NAICOM had set June 30, 2020 as recapitalization deadline for all existing insurance companies in Nigeria.

The recapitalisation of the industry requires that the minimum paid-up share capital for Life Insurance companies 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.

However, the Commission excluded Takaful operators and Micro-insurance companies from the new recapitalization requirements.