Insurance companies that collectively raised about N300 billion in the recent recapitalisation drive are still unable to tap the money, as the [Central Bank of Nigeria](https://www.cbn.gov.ng/) conducts verification to rule out illicit sources. The hold‑up has delayed firms’ plans to inject the capital into operations and dividend payouts.
**Key points:**
- The recapitalisation programme concluded on 31 July 2026, with 24 insurers contributing N300 billion to the pool.
- The total industry capital now stands at N1.079 trillion, up from roughly N700 billion before the exercise.
- The [National Insurance Commission (NAICOM)](https://naicom.gov.ng/) has given its consent for the CBN to release the funds, but insurers must still satisfy the bank’s verification criteria.
- The Nigeria Insurers Association (NIA) expects the process to be completed by the end of the month.
Why are the funds being held?
The CBN placed the recapitalisation proceeds in an escrow account as mandated by the [Nigerian Insurance Industry Reform Act (NIIRA)](https://en.wikipedia.org/wiki/Nigerian_Insurance_Industry_Reform_Act) of 2025. The act requires that any new capital raised by underwriting firms and reinsurers be kept at the central bank until the source of the funds is confirmed to be legitimate. Recent suspicions of possible illicit inflows prompted the apex bank to tighten its verification regime, making it harder for insurers to clear the hurdle.
When will insurers access the capital?
During a virtual press briefing, the chair of the [Nigeria Insurers Association](https://nia.org.ng/), Mrs Ebelechukwu Nwachukwu, said the regulator has fulfilled its part and that the insurance operators are now working through the CBN’s criteria. She added that the firms aim to meet the requirements and obtain the funds on or before the end of the current month.
What are the regulatory requirements?
NIIRA stipulates minimum capital thresholds for different categories of insurers: life underwriters must hold between N2 billion and N10 billion, non‑life insurers between N3 billion and N15 billion, and reinsurers between N10 billion and N35 billion. Of the 50 firms that cleared the recapitalisation test, 24 raised fresh capital while the remaining 26 had already met the minimum benchmark prior to the exercise.
The insurers had planned to deploy the newly released capital in the third quarter of 2026 to improve financial performance and to reward shareholders with higher dividends. The Commissioner for Insurance and CEO of NAICOM, Mr Olusegun Omosehin, confirmed that the industry’s capital base has risen to N1.079 trillion and reiterated that the regulator will monitor the use of the funds to ensure they serve their intended purpose and are not mismanaged.
Overall, while the verification process has temporarily stalled the release of N300 billion, the coordinated effort between the CBN, NAICOM and the insurers is expected to resolve the issue shortly, allowing the sector to move forward with its growth and dividend objectives.