Economy
Devaluation Shrinks Nigerian Insurance Sector Capital Base to $1bn
By Dipo Olowookere
The incessant devaluation of the Naira by the Central Bank of Nigeria (CBN) has not been too helpful to the nation’s insurance sector, a pan-African credit rating agency, Agusto & Co. Limited, has said.
In a report, the foremost business information provider disclosed that since the industry was last recapitalised in 2007, the capital base has reduced in Dollar terms to $1 billion as at December 2020 from $2.2 billion as a result of the devaluation.
In its 2021 insurance industry report, the agency said it expects “the on-going recapitalisation exercise to change the structure of the industry and boost its total value to enable “operators to solely underwrite large ticket transactions.”
The National Insurance Commission (NAICOM), as part of efforts to strengthen the sector, raised the minimum capital for life insurers to N8 billion from N2 billion, non-life insurers to N10 billion from N3 billion, composite insurers to N18 billion from N5 billion and reinsurance insurers to N20 billion from N10 billion.
But due to the COVID-19 disruptions, the exercise has suffered some setbacks, causing the postponement of the implementation date to September 2021.
This is even still disputed in court by some industry operators and aggrieved shareholders, who said the pandemic and #EndSARS protests across Nigeria in October 2020 would make it difficult for companies to beat the deadline.
Nevertheless, Agusto noted that the recapitalisation exercise will increase the capital base of the sector and make the underwriting stronger as it has already spurred mergers and acquisition.
“With the gradual rebound of the global economy, more foreign investors are expected in the industry, given that the Naira devaluation has reduced the value of insurance companies (in USD terms), despite the undisputed opportunities in the Nigerian insurance industry,” a summary of the report made available to Business Post said.
Also, Agusto said the entry of new players into the space would intensify competition and the new firms would introduce new products and business practices.
“Agusto expects a better performance by the Industry in the near term if the opportunities accruing from the pandemic and the #EndSARS is optimised.
“The gradual increase in the prevailing interest rate will also support the investment income of insurers. It is expected that more innovative product distribution channels will be introduced to reduce the dominance of insurance brokers.
“Notwithstanding, Agusto believes the insurance brokers will remain strategic to the Nigerian insurance industry given the wholesale focus of the industry,” the report noted.
It added that for the 2020 fiscal year, Gross Premium Income (GPI) is expected the increase by 15 per cent, while the performance of some insurers will “moderate in 2021.”
By Aduragbemi Omiyale
The pre-registration training and examination for capital market operators (CMOs) for the second quarter of 2026 has been postponed.
Business Post gathered that the new date for the exercise is now Monday, June 15, 2026.
This information was disclosed by the Securities and Exchange Commission (SEC) through a circular on Monday, June 8, 2026.
The Nigerian capital market regulator stated that this postponement has also resulted in the extension of the deadline for registration to Friday, June 12, 2026.
In the notice today, the SEC expressed its regret for the inconvenience this action may cause operators, who had prepared for the initial date of the training and examination.
“Further to the recent circular on Q2 2026 Pre-registration Training and Examination, the Securities and Exchange Commission (SEC) hereby informs all eligible applicants for the Q2 2026 Pre-registration Training and Examination that the commencement date has been postponed to Monday, June 15, 2026.
“Registration on the designated portal has also been extended to Friday, June 12, 2026. All other conditions contained in the circular remain unchanged.
“The commission regrets any inconvenience this postponement may cause and appreciates the understanding of all applicants,” the disclosure noted.
By Aduragbemi Omiyale
One of the leading healthcare firms in Nigeria, Fidson Healthcare Plc, has listed additional shares on the Nigerian Exchange (NGX) Limited.
The new stocks absorbed into the stock market were 600 million units, raising the total issued and fully paid-up shares of Fidson to 3,000,000,000 ordinary shares of 50 Kobo each from 2,400,000,000 ordinary shares of 50 Kobo each.
The fresh equities came from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share.
They were issued to existing investors on the basis of one new ordinary share for every existing four ordinary shares held as of the close of business on Wednesday, November 12, 2025.
Confirming the development, the regulator in a notice said, “Trading licence holders are hereby notified that an additional 600,000,000 ordinary shares of 50 Kobo each of Fidson Healthcare Plc were on Tuesday, June 2, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share on the basis of one new ordinary share for every existing four ordinary shares held as at the close of business on Wednesday, November 12, 2025.
“With the listing of the additional 600,000,000 ordinary shares, the total issued and fully paid-up shares of Fidson Healthcare Plc have now increased from 2,400,000,000 to 3,000,000,000 ordinary shares of 50 Kobo each.”
By Modupe Gbadeyanka
This news will surely excite local contractors with verified claims of N100 million or less, as the federal government has approved their payments.
This approval for the disbursement was given by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.
This followed a verification and reconciliation exercise designed to ensure only validated claims qualify for payment.
The beneficiaries cover contractors across multiple ministries, departments and agencies. The release of the funds is expected to enable contractors to return to project sites, pay workers, settle suppliers and meet outstanding financial commitments.
In an announcement on Monday, the Federal Ministry of Finance also said this latest batch of payments would ease liquidity pressure on small businesses and accelerate economic activity nationwide.
It was noted that the payments for verified claims of N100 million below were strategically done to spread economic impact broadly rather than concentrate disbursements among a handful of large firms.
The payments form part of a broader push to clear inherited contractor obligations, with over N700 billion verified in recent months.
“For many beneficiaries, the release of funds represents more than a financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth,” the ministry said in a statement.
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