NAICOM, NIA talk tough on financial reporting, recapitalisation compliance
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Chuks Udo Okonta
In a strategic move to eliminate delays in financial statement approvals and ensure a hitch-free transition to the new capital regime, the National Insurance Commission (NAICOM) and the Nigerian Insurers Association (NIA) have engaged industry stakeholders on strict adherence to audit and compliance standards.
The one-day sensitisation session, held Wednesday, January 28, 2026, at the NEM Insurance Auditorium, served as a critical alignment meeting for CFOs, auditors, actuaries, and compliance officers as the industry navigates the complexities of the Nigerian Insurance Industry Reform Act (NIIRA 2025) and IFRS 17.
No Room for Errors in Recapitalisation Year
The Chairman of the NIA Accounting Technical Committee, Dr. Emmanuel Otitolaiye, warned that with the ongoing recapitalisation exercise, the industry no longer has the “luxury of time” for back-and-forth corrections on financial statements.
”This is not a year in which financial statements can afford to be returned repeatedly,” Otitolaiye stated. He noted that the session was designed to address learning points from the 2024 review to ensure the 2025 accounts are submitted with minimal errors for expedited approval.
Echoing this sentiment, the Director General of the NIA, Abimbola Odukale, emphasized that the annual collaboration is vital for deepening the relationship between operators and the regulator to foster industry growth.
Regulatory Hammer on Reporting Gaps
The Director of Supervision at NAICOM, Oluwatoyin Charles, reminded operators that financial integrity is a “promise” to the public. She highlighted that the NIIRA 2025 reform is a milestone meant to boost solvency and public confidence.
However, technical gaps remain a concern. Gabriel Oloba, Senior Financial Analyst at NAICOM, took stakeholders through a post-mortem of the 2024 filings, pointing out recurring weaknesses in:
Reconciliation processes within financial notes.
Inconsistent disclosures.
Reporting on Risk-Based Capital (RBC) and Solvency Control and Intervention Framework (SCIF).
Recapitalisation: The Red Lines
Providing a deep dive into the new capital thresholds, the Deputy Director of Supervision, Cyprian Amadi, flagged several deficiencies currently observed among some underwriters, including:
Lack of detailed recapitalisation plans.
Errors in solvency computations.
Vague funding targets, particularly among composite insurers who fail to specify amounts for separate business lines.
Amadi stressed that timely submission of monthly progress reports is non-negotiable for any firm intending to remain competitive in the post-reform era.
