Insurers Still Wait for ₦300bn Recap Funds Held at CBN

About ₦300 billion of fresh capital raised by 24 Nigerian insurance and reinsurance companies is still largely held in escrow at the Central Bank of Nigeria (CBN), more than two weeks after the 30 September release date the National Insurance Commission (NAICOM) had promised. NAICOM says it has told the CBN to return the money, but the apex bank is still running its own checks on where the funds came from. Industry leaders expect the money to be returned before the end of October. Here is why the funds are stuck, what comes next for the sector, and what it means for policyholders and investors.

How the money ended up at the CBN

The Nigerian Insurance Industry Reform Act (NIIRA) 2025 raised the minimum capital that insurers must hold:

The exercise ended on 31 July 2026, BusinessDiary reported. Fifty operators met the new thresholds. Of these, 24 raised fresh money, while 26 already had enough capital. The law required firms that raised new capital to lodge it in escrow accounts with the CBN, rather than with commercial banks as in earlier exercises.

NAICOM says the industry's total capital rose to ₦1.079 trillion after the exercise, up from about ₦700 billion before it. On our calculation, the roughly ₦300 billion in escrow is about 28% of that total.

The escrow was designed so regulators could verify that new capital was genuine and clean. "It's not my money; it's still your money," NAICOM Commissioner Olusegun Ayo Omosehin told journalists in September, explaining that each escrow account is in the insurer's own name.

Why the funds are delayed

At an 11 September briefing, Omosehin said firms would receive their funds on or before 30 September. That date has passed.

• NAICOM has formally instructed the CBN to release the funds, Ebelechukwu Nwachukwu, chairman of the Nigerian Insurers Association (NIA), said at a virtual briefing on 13 October. She said the money will go back to the exact accounts it came from once the CBN finishes verification, and should be fully returned within October.
• The CBN is carrying out stricter source-of-funds checks because of complaints and petitions that followed the fundraising, a source told The Nation.
• Omosehin has said NAICOM will monitor how firms use the money to ensure it is not mismanaged or diverted, BusinessDiary reported.

Reports differ on who has been paid

The picture is not uniform. Arise News reported that, as of 13 October, none of the 24 firms had received funds. The Nation, a day earlier, said one of three insurers it contacted had received its money after the deadline, while two were still waiting. BusinessDiary listed about 20 firms, including Sovereign Trust, Cornerstone, LASACO, Linkage Assurance, Prestige, Sunu Assurances and Guinea Insurance, among those set to access their funds this week. No official list of releases has been published.

Why the timing matters

The fourth quarter is a key period for policy renewals and new business, The Nation noted. Omosehin has said stronger capital will let insurers underwrite larger risks and better meet obligations to policyholders. The NIA chairman urged firms to use the bigger capital base to expand local underwriting, increase retention at reinsurance renewals, and cover new risks such as cyber and climate.

What comes after recapitalisation

• Risk-based capital. NAICOM has appointed EY to guide a move to a risk-based capital regime, under which the capital a firm must hold depends on the risks it takes, not just a fixed minimum. An exposure draft will be shared with operators before final adoption.
• Actuarial skills. The industry has set up a Joint Actuarial Development Fund, due to start fully by January 2027. NAICOM will fund 20%, with operators and development partners covering the rest.
• Service. Insurers were urged to speed up claims, adopt NAICOM's automated systems and its new Personal Service Charter, and develop health insurance products distinct from HMO plans.

What this means for policyholders and investors

• This is about timing. The reports describe a delay in when insurers can use capital they have already raised, not a failure to meet the new requirements. All 50 operators passed NAICOM's thresholds.
• Watch for release confirmations. Listed insurers may update the market once funds arrive. Firms with idle capital may delay expansion plans until then.
• Stronger balance sheets, tougher rules. Higher capital and a coming risk-based regime should favour well-run insurers over time, but they also raise the bar on governance and reporting.
• Most listed insurers trade at low prices. Many named in the reports closed under ₦5 on 16 October, so small orders can move them sharply.

This is for information only and is not investment advice.

FAQ

Why are insurance recapitalisation funds held at the CBN?

NIIRA 2025 requires insurers that raised fresh capital to keep it in CBN escrow accounts so regulators can verify its source before release. About ₦300 billion from 24 firms was lodged.

When will insurers get their recapitalisation money?

NAICOM promised release by 30 September 2026, but CBN checks delayed it. The Nigerian Insurers Association says the funds should be fully returned within October.

What is the new minimum capital for insurers in Nigeria?

Under NIIRA 2025, life insurers need ₦10 billion, non-life insurers ₦15 billion and reinsurers ₦35 billion.

Sources

• Arise News, "CBN due diligence delays release of N300bn recapitalisation funds to insurers" (15 Oct 2026)
• The Nation, "Recapitalisation: Insurers face more scrutiny over sources of funds" (12 Oct 2026)
• BusinessDiary, "24 insurers await CBN for release of N300bn recapitalisation funds" (16 Oct 2026)
• Independent, "NAICOM set to disburse N1.079trn recapitalisation funds soon" (14 Oct 2026)
• Nigerian Exchange Limited, equities price list, trade date 16 October 2026