By Adedapo Adesanya
The National Insurance Commission (NAICOM) has given insurance companies operating in the country till December 31, 2020 to shore up their capital base.
The industry regulator had earlier fixed June 2020 as the recapitalisation deadline date for operators, but in a new announcement, it said the deadline has been pushed forward after reviewing certain considerations.
The Director, Policy and Regulation Directorate at NAICOM, Mr Pius Agboola, said in a circular titled Minimum Paid Up share Capital Policy for Insurance and Reinsurance Companies in Nigeria, dated December 30, 2019, that the agency reviewed the recapitalisation plans submitted by insurance operators and various levels of compliance observed and after taken into consideration the inputs from the various engagements with relevant stakeholders, it has decided to extend the recapitalisation deadline to December 31, 2020.
The insurance regulator explained that the Central Bank of Nigeria (CBN) has obliged it with the recapitalisation escrow accounts (T24) for the deposit of fresh funds raised for the recapitalisation with details: T24 Account Name: Recapitalisation Escrow – NAICOM and T24 Account No. 0230164061014.
NAICOM said that part of the measures that have been put in place to ease the recapitalisation process include tasking the relevant agencies to set up help desks that will fast track the applications for ‘No objections’ and also for approvals.
The body also said that insurers and other operators have started engaging with these agencies in order to meet the new deadline.
