Nigeria: Recapitalisation - NIA Seeks Palliatives for Insurance Operators

24 January 2020

Following the extension of the recapitalization deadline given to insurance companies, Nigerian Insurers Association, NIA, has appealed for palliatives and incentives from National Insurance Commission, NAICOM, to cushion the cost of the exercise on operators.

Director General of NIA, Mrs. Yetunde Ilori, who made the appeal, noted that such intervention will assist operators to increase shareholders' value.

In a statement, Ilori stated: "The market expects more cheery news from NAICOM by way of palliatives and incentives especially those that are within the Commission's control. The cost of the exercise will be too heavy on the companies and this will assist the companies to reduce the cost of recapitalization and increase shareholder value."

Commending the Commission on the extension of the recapitalization exercise, she said: "The association appreciates the Acting Commissioner for Insurance, Mr. Sunday Thomas and management of NAICOM for acceding to our request.

"This singular move has no doubt portrayed the Commission as one with a listening ear. It has proven to be responsive to the yearnings and aspirations of the insurance operators and shown that the interest of the market is uppermost in its considerations".

According to the DG, the extension will give insurance companies ample time to comply with the directive instead of having to go into the exercise without adequate preparation and diligent execution.

"This will also be in support of a seamless reinsurance arrangement which is an annual arrangement. It would have been absurd to conclude the recapitalization exercise by midyear as this might have caused a lot of disruptions," she noted.

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