NAICOM, NIA, reinforce partnership with insurance industry on financial reporting, audit and compliance matters
National Insurance Commission NAICOM
Nike Popoola
The Nigerian Insurers Association (NIA), in collaboration with the National Insurance Commission (NAICOM), organized a one-day stakeholders’ session for the insurance industry. The event, held on Wednesday, 28 January 2026, at the NEM Insurance Auditorium, brought together finance, audit, and compliance personnel of insurance companies, external auditors, actuaries, and industry consultants.
In his welcome address, the Chairman of the Accounting Technical Committee of the Nigerian Insurers Association (NIA), Dr. Emmanuel Otitolaiye, emphasized the importance of continuous collaboration as a critical mechanism for ensuring regulatory compliance within the industry and preventing infractions that could delay the timely approval of audited financial statements. He further expressed appreciation to the Commission for its consistent support in providing guidance and for fostering open engagement with industry stakeholders to promote a clearer understanding of regulatory requirements. He said, “The importance of this programme cannot be overemphasized, as it provides an opportunity for us to learn directly from NAICOM based on the review of the 2024 financial statements submitted by the industry. Several issues were identified during the review, and in view of the collaborative relationship between NAICOM and the industry, the Commission is not primarily focused on penalizing operators but rather on working with the industry to address the identified learning points. This is the rationale behind the organization of this programme in January.
The objective is for all stakeholders to take on board these learning points and incorporate them into the 2025 financial statements, so that by the time accounts are submitted to NAICOM, there will be fewer issues to contend with, and approvals can be granted more expeditiously.
It is also important to note that this is a year of recapitalization, with significant work and engagement ongoing in that regard. Consequently, this is not a year in which financial statements can afford to be returned repeatedly for correction. The luxury of time is limited, not only for NAICOM but also for the industry, given the numerous activities scheduled throughout the year.”
In her welcome address, Abimbola Odukale, the Director General Nigeria Insurers Association (NIA) noted that the yearly programme has deepen collaboration between members company and NAICOM and look forward for a more robust relationship in the overall interest of insurance industry.
The Director Supervision, NAICOM, Oluwatoyin Charles, in her remark, reaffirmed the Commission’s commitment to providing an enabling environment for a strong and stable insurance industry. Mrs. Oluwatoyin noted the Commission’s delight to the annual joint meeting on the Nigerian Insurance Industry Reform Act (NIIRA 2025) as well as post-implementation of International Financial Reporting Standard 17 (IFRS 17), ‘Insurance Contracts’.
“As we gather today, our discussions take on even greater significance given the ongoing transformations in our regulatory environment, particularly the recapitalization exercise introduced under the NIIRA 2025. This reform represents a pivotal milestone for our industry – one designed to strengthen solvency, enhance risk‑bearing capacity, and position Nigerian insurance institutions for sustainable growth and increased public confidence. We recognize that many organizations are already taking bold steps toward meeting the new capital thresholds and structuring their internal processes to ensure timely compliance. Our level of readiness as an industry reflects a collective determination to not only meet regulatory requirements but to embrace this transition as an opportunity for modernization, improved governance, and greater operational resilience”. she said.
On the IFRS 17 standard, Mrs. Oluwatoyin urged industry participants to ensure greater accuracy and transparency in the preparation and disclosure of financial statements.
“Financial integrity is not simply a standard – it is a promise. A promise that every number tells the truth, every report earns trust, and every decision protects the future.”
This quote resonates deeply with each of us – CFOs, Auditors, and Actuaries – because we collectively form the backbone of financial accountability in our sector. Your roles, though distinct, are interwoven by a shared responsibility: ensuring that financial reporting is accurate, transparent, and aligned with both local and global expectations”.
The Senior Financial Analyst, Office of Deputy Commissioner Technical NAICOM, Mr. Gabriel Oloba, delivered an in-depth presentation in which he carefully dissected common errors and key regulatory concerns observed in the financial statements submitted by insurance companies. He drew attention to recurring weaknesses in disclosures and reconciliation processes, particularly within the notes to the financial statements, noting that these shortcomings often delay regulatory review and approval.
Mr. Oloba further provided detailed regulatory guidance and practical recommendations on how insurers can address these issues, emphasizing the importance of accuracy, consistency, and full compliance with applicable reporting standards and regulatory requirements. His session was aimed at strengthening industry’s understanding of regulatory expectations and supporting insurance companies in improving the quality of their financial reporting, thereby facilitating a more seamless review process and faster approval by the Commission.
In his closing statement, he urged the industry to disclose all necessary information regarding the new capital regime in line with the requirements of extant regulations such as Minimum Capital Requirement (MCR), Risk Based Capital (RBC), Capital Adequacy, and Solvency Control and Intervention Framework (SCIF).
The Deputy Director of Supervision at NAICOM, Mr. Cyprian Amadi, spoke extensively on recapitalization, highlighting key issues such as compliance timelines, recapitalization options, capital verification, and capital computation processes. He emphasized the importance of recapitalization plans and progress reporting, urging insurance companies to comply with regulatory requirements by submitting their Minimum Capital Requirement (MCR) status, defined milestones, and documented efforts toward meeting the recapitalization targets.
He noted several deficiencies observed among some companies, including the absence of detailed recapitalization plans, errors in solvency computations, and failure to clearly specify the amounts to be raised for each line of business particularly among composite insurers.
In his concluding remarks, Mr. Amadi stressed that the timely submission of accurate and detailed monthly progress reports is critical to the success of the recapitalization exercise. He described recapitalization as a transformative initiative aimed at repositioning the Nigerian insurance industry for sustainable growth and enhanced global competitiveness.
