Economy
NAICOM Asks Insurance Companies to Tackle Unpaid Claims
By Adedapo Adesanya
The boards of insurance companies operating in the country have been charged by the National Insurance Commission (NAICOM) to embrace the measures put in place to tackle the challenges of unpaid claims.
The Commissioner for Insurance, Mr Sunday Thomas, expressed worry over the number of outstanding claims in the sector despite efforts by the regulator to address the issue.
Mr Thomas, who is also the chief executive of NAICOM, said the organisation, in collaboration with members of the Insurers’ Committee, has taken decisions and incepted measures designed to tame the menace of unpaid claims.
Speaking at the 2023 Insurance Directors’ Conference organised by the College of Insurance and Financial Management (CIFM) in Lagos themed The Board and Insurance Business Sustainability, he called on “members of the boards of insurance institutions to support these measures by putting in place policies designed to tackle the menace.”
“The commission will not hesitate to consider other regulatory measures to address the menace,” he added.
Mr Thomas highlighted some of the high-level issues observed by the commission during its just concluded fourth batch of the onsite examination of some insurance institutions, using the risk-based supervision methodology.
The commissioner stated that NAICOM observed that some insurance firms embarked on inadequate policies and procedural manuals, and in some cases, non-adherence to these policies where they existed.
He said some policies did not reflect the specific requirements of extant regulations such as the Prudential Guidelines and Market Conduct Guidelines, among others.
According to him, there is a need for directors to improve their understanding of the requirements of AML/CFT particularly, the recently introduced requirements regarding proliferation financing in the AML/CFT/CPF regulations 2022.
“Also, inadequate risk profiling methodologies and practices, absence of policies to protect Chief Compliance Officers and Chief Risk Officers from intimidation and victimisation.
Inadequate board compliance policies result in companies breaching extant laws and regulations with no consequential action by the board.
“Inadequate focus of boards on risks inherent in the core or significant activities of insurance companies such as underwriting, reinsurance, claims, investment and information technology, among others.
“Under-trading as the ratio of capital to a premium of most companies are below the standard threshold.”
According to the commissioner, these issues require urgent attention of the boards by way of adequate policies to ensure proper guidance to ensure the sustainability of insurance institutions.
Mr Thomas noted that companies went under due to the inactions of people noting that most of the issues that led to the collapse of companies resulted from governance challenges.
He said that NAICOM recently had to penalise some companies that had utilised unlicensed intermediaries in blatant breach of the Insurance Act 2003.
The commissioner stated that in recognition of the increasingly complex business environment, the commission had resolved to facilitate innovation and sustainability of the industry.
Mr Thomas hinted that NAICOM had heightened its supervision and now focused on resolving broader policy challenges such as sustainability, climate risk and digitalisation, among others.
He said this would be done through regulatory policy initiatives that could facilitate the offer of an essential range and variety of products and services that supported the Sustainable Developmental Goals (SDGs).
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, has disclosed that Nigeria’s external reserves have risen to about $49 billion as of February 5, 2026, describing the development as a clear sign of improving confidence in the country’s economy.
Mr Cardoso spoke on Monday in Abuja at the second edition of the National Economic Council (NEC) conference, where he explained that the growth in reserves represents a 4.93 per cent increase from the last figure of $46.7 billion which marks a major turnaround from what the country faced when the current leadership took over the apex bank.
“This is obviously a very important statistic,” Mr Cardoso said. “When we took over, the net reserve figure was about $3 billion. As at the end of last year, the net reserve figure had gone up strongly into the 30s. And as I said, as of February 5, 2026, it is $49 billion. We are now net buyers.”
He explained that the central bank now allows the foreign exchange market to largely determine prices, while the bank steps in to buy foreign exchange when necessary. According to him, this approach has helped to close the gap between the official and parallel market exchange rates. “The premium between the official and parallel market rates has collapsed to under two per cent,” he said.
Mr Cardoso said remittances from Nigerians living abroad have played a major role in boosting the country’s foreign reserves. He noted that Nigerians in the diaspora come from all parts of the country and are keen to support the economy by sending money home.
“Remittances have made a big difference to how we have grown our reserves,” he said. “The diaspora come from every single state represented here. We have engaged with them and made it easier for them to remit money back to Nigeria.”
He added that the cooperation of state governors and other leaders would be crucial in sustaining this progress in the coming years.
The CBN helmsman said recent reforms have also made foreign exchange more accessible to ordinary Nigerians, especially those travelling abroad.
“When people travel now, you don’t have to look for foreign exchange to travel,” he said. “You use your Naira card and pay for whatever you want. Now the Naira is more competitive and people are not afraid to hold Naira.”
He warned Nigerians who are holding foreign currency without real need that such actions could lead to losses.
“Those holding unnecessary foreign exchange reserves are losing money every day,” he said.
By Adedapo Adesanya
Six price gainers lifted the NASD Over-the-Counter (OTC) Securities Exchange by 2.09 per cent on Monday, February 9, amid a surge in activity level.
According to data, the volume of securities significantly increased by 3,499.1 per cent to 13.3 million units from the 384,784 units recorded in the preceding trading session, as the value of securities soared by 518.0 per cent to N99.3 million from N16.1 million, and the number of deals moved up by 95.8 per cent to 47 deals from the preceding session’s 24 deals.
Central Securities Clearing System (CSCS) Plc ended the day as the most active stock by value on a year-to-date basis with 16.9 million units exchanged for N699.9 million, followed by Geo-Fluids Plc with 23.2 million units valued at N123.6 million, and FrieslandCampina Wamco Nigeria Plc with 1.8 million units traded for N118.5 million.
However, Geo-Fluids Plc became the most traded stock by volume on a year-to-date basis, with 23.2 million units worth N123.6 million, as CSCS Plc was pushed down the pecking order as second with 16.9 million units transacted for N699.9 million, while Mass Telecom Innovation Plc sold 15.1 million units for N6.1 million.
The price gainers were led yesterday by Okitipupa Plc after it gained N17.00 to trade at N237.00 per share versus the previous price of N220.00 per share, FrieslandCampina Wamco Nigeria Plc added N6.00 to sell at N66.00 per unit versus N60.00 per unit, and CSCS Plc grew by N5.35 to N58.85 per share from N53.50 per share.
Further, IPWA Plc appreciated by 23 Kobo to N2.59 per unit from N2.36 per unit, UBN Property Plc increased its value by 19 Kobo to N2.19 per share from N2.00 per share, and Industrial and General Insurance (IGI) Plc advanced by 5 Kobo to 59 Kobo per unit from 54 Kobo per unit.
However, Nipco Plc lost N9.00 on Monday to close at N250.00 per share versus last Friday’s price of N259.00 per share, and Geo-Fluids Plc dipped by 22 Kobo to N4.08 per unit from N4.30 per unit.
At the close of business, the market capitalisation of the bourse was up by N46.2 billion to N2.253 trillion from N2.207 trillion, and the NASD Unlisted Security Index (NSI) jumped 77.22 points to 3,766.94 points from 3,689.72 points.
By Adedapo Adesanya
The first trading of the week at the Nigerian Autonomous Foreign Exchange Market (NAFEX) ended bullish for the Naira as it gained N11.93 or 0.87 per cent against the US Dollar on Monday, February 9, to trade at N1,354.26/$1 compared with the previous day’s N1,366.19/$1.
It also appreciated against the Pound Sterling in the official market during the session by N12.03 to settle at N1,845.72/£1 versus last Friday’s closing price of N1,857.75/£1, but depreciated against the Euro by 69 Kobo to quote at N1,613.19/€1, in contrast to the N1,612.52/€1 it was exchanged last Friday.
At the GTBank forex desk, the Nigerian Naira appreciated against the Dollar yesterday by N4 to close at N1,379/$1 versus the previous rate of N1,383/$1, and at the parallel market, it was flat at N1,450/$1.
The fortification of the Nigerian currency in the currency market on Monday was driven by forex liquidity, strong oil receipts, and flows from foreign investors attracted by the high yields on the country’s debt market.
Speaking at a forum on Monday, the Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, declared that the bank’s reforms have established economic stability, evidenced by a significant reduction in inflation and growing external reserves, which he stated stood at $49 billion as of February 5, 2026.
He also highlighted the stability of the FX market, noting that the CBN is now accumulating foreign exchange from the market to enhance sustainability.
“By that, I mean that we now allow the market to generally find its level; many times, the Central Bank itself goes in to buy foreign exchange. The premium between the official and parallel market rates has collapsed to under 2 per cent,” Mr Cardoso stated.
The CBN chief said the reforms of the monetary authority—anchored on disinflation, FX market normalisation, and financial-system resilience—are already strengthening real-sector confidence.
As for the cryptocurrency market, it was in a recovery mode as investors took advantage of the drop in prices to add to their portfolios.
The pullback followed a turbulent few days in which Bitcoin (BTC) plunged to as low as $60,000 before rebounding. It rose 0.5 per cent on Monday to $70,415.57, as Ethereum (ETH) gained 0.9 per cent to trade at $2,116.42.
Further, Ripple (XRP) improved by 1.4 per cent to $1.44, Litecoin (LTC) expanded by 0.8 per cent to $54.66, Solana (SOL) grew by 0.5 per cent to $87.11, and Cardano (ADA) added 0.2 per cent to settle at $0.2704.
On the flip side, Binance Coin (BNB) slumped 0.6 per cent to $638.34, and Dogecoin (DOGE) weakened by 0.3 per cent to $0.0963, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
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