Insurance

The Nigeria Deposit Insurance Corporation (NDIC) has raised fresh concerns over the impact of mandatory fiscal deductions imposed by the Federal Government, warning that the policy is constraining its ability to build a strong and resilient Deposit Insurance Fund (DIF) needed to protect Nigerian bank depositors in the event of bank failures.

The concern was voiced by the Managing Director and Chief Executive Officer of the NDIC, Mr. Thompson Oludare Sunday, during a courtesy visit to the Managing Director of the Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang. According to Mr. Sunday, the government’s mandatory 50 per cent cost-to-income remittance policy significantly limits the Corporation’s capacity to accumulate sufficient reserves in the DIF, a cornerstone of effective deposit insurance systems worldwide.

He explained that while NDIC remains fully compliant with all statutory fiscal and financial regulations—including the Fiscal Responsibility Act (FRA) of 2007—the scale of compulsory deductions is undermining its operational flexibility. More importantly, he said, it weakens NDIC’s preparedness to respond swiftly and independently in periods of banking sector distress.

Why NDIC is worried

Mr. Sunday noted that international best practices, as outlined by the International Association of Deposit Insurers (IADI), require deposit insurance institutions to maintain adequate standalone funds. These funds are meant to ensure that depositors can be reimbursed promptly without reliance on emergency government intervention.

According to him, the current structure of mandatory remittances reduces the pool of funds available to strengthen the DIF, thereby exposing the system to potential risks during widespread or systemic bank failures. “These deductions affect NDIC’s ability to build a strong Deposit Insurance Fund, which is needed to respond effectively when banks fail,” he said, adding that the Corporation is therefore seeking exemption from certain mandatory fiscal deductions.

In a statement issued by NDIC’s Head of Communications and Public Affairs, Hawwau Gambo, the Corporation clarified that the request for exemption is not a rejection of fiscal discipline but an effort to align Nigeria’s deposit insurance framework with global standards. The statement emphasized that a well-funded DIF is central to depositor confidence and financial system stability.

Commitment to compliance

Despite its concerns, NDIC reiterated its strict adherence to all statutory obligations. Mr. Sunday stressed that the Corporation consistently remits either 20 per cent of gross earnings or 80 per cent of net surplus to the Federal Government, depending on which rule applies. He also highlighted NDIC’s track record of submitting audited financial statements ahead of statutory deadlines and operating fully within the government’s fiscal responsibility framework.

“This culture of compliance is central to our credibility as a key institution within Nigeria’s financial safety-net,” he said, underscoring that NDIC’s request for exemption is aimed at strengthening, not weakening, the country’s financial architecture.

MOFI responds, pledges support

In his response, MOFI’s Chief Executive, Dr. Armstrong Takang, commended NDIC for what he described as an exemplary record of transparency, collaboration, and fiscal responsibility. He acknowledged the strategic importance of a financially strong NDIC, particularly in maintaining depositor confidence and safeguarding the broader banking system.

Takang assured that MOFI—acting on behalf of the Federal Government, which holds a 40 per cent equity stake in NDIC—would continue engaging the Ministry of Finance and other relevant stakeholders to address the Corporation’s concerns. He pledged institutional support to ensure that NDIC can effectively carry out its mandate without compromising its financial sustainability.

A strategic partnership for stability

Both NDIC and MOFI reaffirmed their commitment to sustained cooperation, transparency, and dialogue. Mr. Sunday described MOFI as a critical strategic partner, noting that continuous engagement is essential to balancing fiscal compliance with NDIC’s core responsibility of depositor protection.

He emphasized that resolving the issue of mandatory deductions would not only strengthen NDIC but also enhance the resilience of Nigeria’s financial safety-net as a whole, especially at a time of heightened global and domestic economic uncertainty.

What you should know

Deposit Insurance Premiums are statutory payments made by deposit-taking financial institutions to NDIC. These premiums enable NDIC to guarantee deposits up to the insured limit—currently N5 million per depositor per bank—when an insured institution fails.

Nigerian banks already face significant regulatory costs. In addition to NDIC premiums, they are required to pay levies to the Asset Management Corporation of Nigeria (AMCON). In the first quarter of 2025 alone, ten major banks reportedly paid a combined N377.85 billion in AMCON and NDIC charges. Of this amount, AMCON levies accounted for N283.85 billion, while NDIC deposit insurance premiums stood at N93.99 billion.

Against this backdrop, NDIC argues that easing mandatory fiscal deductions on the Corporation itself would help ensure that the Deposit Insurance Fund remains strong enough to protect depositors and preserve confidence in Nigeria’s banking system.

International Energy Insurance Plc (IEI Plc) has unveiled an ambitious plan to raise N22 billion in fresh capital, a strategic move designed to consolidate its post-restructuring gains and reposition the company for accelerated growth within Nigeria’s increasingly competitive insurance sector. The development comes at a defining moment for the firm, following a change in executive leadership that signals the beginning of a new chapter in its corporate evolution.

The insurer confirmed that Mr. Olasupo Sogelola stepped down from his role as Managing Director and Chief Executive Officer on November 12, 2025, marking the end of a tenure widely credited with stabilising the organisation, restoring investor confidence, and driving crucial reforms. In his place, the Board has appointed Dr. Joyce M. Odiachi as Acting Managing Director, entrusting her with the mandate to guide the company through its next phase of recapitalisation, expansion, and operational strengthening.

A Strategic N22 Billion Capital Raise

IEI Plc disclosed that preparations for the N22 billion recapitalisation are already at an advanced stage. The capital raise represents a cornerstone of the company’s ongoing turnaround strategy, aimed at enhancing solvency, boosting underwriting capacity, and enabling the execution of new growth opportunities—especially in the energy and general insurance segments where IEI has historically held a competitive edge.

The recapitalisation effort follows a series of key achievements that have significantly improved the company’s financial standing and overall market perception. Top among these milestones are the successful relisting of IEI shares on the Nigerian Exchange (NGX) after a period of suspension, and the full repayment and exit of the Daewoo loan, a legacy liability that had weighed heavily on the company’s balance sheet for years. With this debt fully extinguished, IEI Plc now has greater flexibility to deploy fresh capital toward innovation, technology upgrades, and expanding its product offerings.

Under the stewardship of the Norrenberger Financial Group, its core shareholder, the company has strengthened its governance framework, institutional discipline, and enterprise risk management systems. This strengthened foundation places IEI Plc in a favourable position ahead of anticipated regulatory reforms that may require insurers to shore up capital and upgrade operational standards.

Leadership Change at a Defining Moment

The transition to Dr. Joyce Odiachi as Acting Managing Director is widely seen as a strategic appointment, given her robust track record in risk management, corporate governance, and operational transformation. With over two decades of industry experience and professional designations including Fellow of the Insurance Institute of Nigeria (FIIN) and Fellow of the Risk Managers Society (FRMN), Dr. Odiachi is expected to provide strong technical direction as the company navigates its recapitalisation drive.

Her appointment ensures leadership continuity and organisational stability following the departure of Mr. Sogelola, under whose leadership the company achieved major improvements in operations, visibility, investor engagement, and structural efficiency. The Board described his tenure as one defined by “growth, resilience, and strategic progress.”

Repositioning for Market Leadership

IEI Plc’s transformation journey has already earned the insurer multiple industry recognitions for service quality, governance improvements, and operational excellence. Founded in 1969 as Nigeria’s pioneering energy insurance specialist, the company has since expanded into general insurance while maintaining its expertise in underwriting complex risks.

Analysts note that the planned N22 billion capital raise will help IEI Plc strengthen its presence among tier-two insurers, enabling it to compete more aggressively, invest in technology-driven solutions, and capture new business opportunities emerging from Nigeria’s expanding energy, logistics, and infrastructure sectors.

With the combination of a refreshed leadership team, renewed financial strategy, and a cleaned-up balance sheet, IEI Plc is now shifting decisively from “turnaround mode” toward long-term growth. Stakeholders express optimism that the recapitalisation, once completed, will enhance the insurer’s financial resilience, support innovation, and secure its position as a formidable player in the Nigerian insurance market.

The Speaker of the House of Representatives, Rt. Hon. Abbas Tajudeen, has urged the Federal High Court, Abuja, to dismiss a restraining suit filed by the Nigerian Insurers Association (NIA) and 17 insurance companies over the ongoing probe into alleged N98.4 billion liabilities involving non-government-funded insurance firms in Nigeria.

The request for dismissal is contained in a counter-affidavit dated November 6, 2025, filed by Mrs. Bukola O. Adeagbo, lead counsel for Tajudeen, the House Committee on Capital Markets and Institutions, Hon. Kwamoti B. Laori, and Hon. Bob Solomon, as obtained by Nairametrics.

The lawmakers’ filing followed a temporary restraining order earlier granted by the court, stopping the House from summoning the NIA and the 17 insurers in connection with the probe, pending the hearing of the substantive suit.

Lawmakers’ Counter-Affidavit

According to the lawmakers’ counter-affidavit, the insurers’ CEOs operate under laws enacted by the National Assembly and are registered with government agencies that receive funding from the Federation Account based on those laws.

“The Defendants have the power to investigate allegations, procure evidence, and summon any person, including the Plaintiffs, for the purpose of any investigation into matters under their legislative competence,” the affidavit stated.

The document, deposed to by an official of the House Committee on Capital Markets, further argued that the legislators possess constitutional powers to invite individuals and examine the implementation of laws made by them in accordance with Sections 88 and 89 of the 1999 Constitution.

Counsel for the lawmakers contended that the insurers’ invitation was aimed at exposing alleged corruption and wastage, suggesting that the plaintiffs’ refusal to appear indicates they have something to hide.

The counsel added that the insurers have so far refused to honour the House’s invitation, describing their lawsuit as “frivolous” and urging the court to dismiss it in the interest of justice.

Nairametrics gathered that the case has been adjourned to December 9, 2025.

Backstory

Earlier, Nairametrics reported that Justice Emeka Nwite granted a restraining order against the lawmakers and in favour of the insurers, noting that the CEOs “stand the risk of being arrested” while the substantive case remains pending.

Professor Taiwo Osipitan, SAN, lead counsel for the insurers, argued in court filings that his clients are privately funded entities conducting insurance business under the supervision of executive agencies — including the National Insurance Commission (NAICOM), Corporate Affairs Commission (CAC), and Federal Inland Revenue Service (FIRS) — not the House of Representatives.

The plaintiffs, therefore, asked the court to restrain the lawmakers from enforcing or implementing the directives in their letter of invitation dated July 3, 2025, or any subsequent summons to the CEOs of the 2nd–18th plaintiffs, pending the determination of the substantive suit.

The NIA, in an earlier press statement, criticised the House Committee on Capital Markets and Institutions for what it described as “legislative overreach” in its ongoing investigation of certain member companies for alleged multibillion-naira financial infractions.

The Association said it represents licensed insurance and reinsurance firms in Nigeria and expressed concern over the Committee’s comments about alleged financial misconduct by some members.

This development follows reports that the House began probing 25 insurance companies over alleged non-remittance of multibillion-naira revenues owed to the Federal Government.

Nigeria’s insurance industry recorded strong momentum in the second quarter of 2025, with total gross written premiums reaching ₦1.21 trillion, representing a 49.3% year-on-year increase. At the forefront of this growth is NEM Insurance Plc, which posted an impressive ₦75.41 billion in insurance revenue for the quarter, placing it among the top three general insurers in the country.

According to data released by the National Insurance Commission (NAICOM), the industry showed remarkable resilience despite macroeconomic challenges, demonstrating continued investor confidence and customer trust in the nation’s insurance ecosystem.

NEM Insurance Strengthens Market Position

NEM Insurance’s latest financial report highlights the company’s solid market performance. Its ₦75.41 billion Q2 revenue represents a significant leap from the ₦45.47 billion recorded in the same period of 2024. This growth reaffirms NEM’s position as one of the most profitable and efficient players in Nigeria’s general insurance business.

The insurer also reported total assets of ₦159.90 billion as of June 30, 2025 — up from ₦121.93 billion recorded in December 2024. Liabilities rose to ₦83.97 billion from ₦56.49 billion, while shareholders’ equity grew to ₦75.93 billion, reflecting the company’s robust capital position and compliance with the Minimum Capital Requirement (MCR) stipulated under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

Despite a strong revenue rise, profit before tax dropped to ₦3.08 billion, compared to ₦17.94 billion in the previous year, largely due to increased claims and operational costs. Profit after tax also decreased to ₦2.66 billion from ₦15.48 billion in 2024.

Healthy Balance Sheet and Cash Flow

NEM Insurance’s liquidity position remained strong, with ₦11.82 billion in cash and cash equivalents at the end of Q2 2025. The company recorded ₦8.78 billion in net operating cash inflow, while investing and financing activities resulted in outflows of ₦4.46 billion and ₦5.28 billion, respectively.

The company’s share capital stood firm at ₦5.02 billion, while retained earnings rose to ₦49.40 billion. Its statutory contingency reserve increased to ₦18.75 billion, reflecting a disciplined approach to financial management and long-term sustainability.

Industry Overview: Non-Life Segment Dominates

The broader insurance market saw significant growth in the second quarter. NAICOM reported that the sector’s total assets surged to ₦4.4 trillion, up from ₦2.3 trillion in Q2 2024. The non-life insurance segment retained its dominance, contributing 67.2% of total premiums, while the life insurance segment accounted for 32.8%.

Within the non-life segment, oil and gas insurance led the pack, contributing 31.2% of total premiums, followed by fire insurance (18.9%) and motor insurance (15.8%). Other key portfolios included general accident (8.9%), miscellaneous (8.9%), marine (8.8%), and aviation (7.4%).

Recognition for Leadership and Innovation

The company’s continued excellence earned NEM Insurance Managing Director, Mr. Andrew Ikekhua, a spot among Nigeria’s Top 25 CEOs, an award recognizing outstanding leadership and innovation across sectors. Organized by BusinessDay, the award celebrated NEM’s operational efficiency, resilience, and consistent customer satisfaction.

Ikekhua was commended for fostering a culture of innovation, inclusivity, and accountability that has strengthened NEM’s market presence. He attributed the company’s achievements to teamwork, discipline, and divine guidance, emphasizing NEM’s commitment to policyholder satisfaction and national economic development.

Sustained Growth and Strong Credit Rating

NEM Insurance’s performance has also earned it an “AA+ (NG)” credit rating with a Stable Outlook from Global Credit Rating (GCR), an affiliate of Moody’s. This rating reflects strong capital adequacy, prudent risk management, and consistent profitability.

As of year-end 2024, the company’s total assets had already surpassed ₦150 billion, while shareholders’ funds exceeded ₦75 billion, solidifying its position as one of the leading listed insurance firms on the Nigerian Exchange.

In 2025, NEM Insurance continued to deliver on its promise of reliability, fulfilling ₦24 billion in claims and paying over ₦5 billion in dividends to shareholders. These achievements underscore its reputation as one of Nigeria’s most dependable insurers — a brand built on integrity, financial strength, and innovation.

NEM Insurance Plc has received widespread commendation from customers and industry stakeholders for its exceptional service delivery, timely claims settlement, and adoption of technology that enhances customer experience. The praises came during the celebration of Customer Service Week 2025, an event that offered clients a platform to share feedback and celebrate service excellence.

Celebrating Customer-Centric Excellence

As one of Nigeria’s top three insurance firms and the leading non-life insurer by revenue, NEM Insurance has continued to demonstrate consistency in customer satisfaction. During the week-long celebration, customers visited the company’s head office and branches nationwide to express their appreciation and share positive experiences with staff and management.

Many clients described NEM Insurance as a trusted partner that combines professionalism, innovation, and empathy in delivering services. They emphasized that the insurer’s commitment to maintaining strong relationships and ensuring prompt claims payment has distinguished it in the competitive insurance market.

Industry Leaders Share Their Experiences

Kayode Ogunbotu, Managing Director of Senforce Insurance Brokers, praised NEM Insurance for its swift claims response and reliable communication.

“There are no difficulties dealing with NEM. Their staff are friendly, responsive, and their technology makes transactions seamless,” Ogunbotu said. “I’ve been working with them for over 35 years, and their consistency in paying claims, including one as large as ₦50 million, is remarkable.”

He encouraged businesses and individuals to trust NEM Insurance with their risks, noting that the company has the financial strength to meet obligations without delay.

Similarly, Lateef Akintoye, Managing Director of Hope Equity & Trust Insurance Brokers Limited, described NEM as proactive and customer-focused. He highlighted the company’s efficiency in handling claims once proper documentation is complete.

“NEM Insurance stands out because they settle claims within hours after verification,” Akintoye stated. “Prompt claims payment remains the hallmark of insurance, and NEM continues to prove its reliability in this regard.”

He also urged the public to embrace insurance and secure policies with dependable firms like NEM Insurance, adding that “life is full of risks, but with NEM, customers can always count on timely support.”

Long-Term Partners Express Confidence

Courage Insurance Brokers Limited, a long-standing partner of NEM Insurance, commended the company for being dependable and consistent in partnership for over a decade. The brokerage firm lauded NEM’s management for its flexibility, strong ethics, and commitment to sustaining client relationships.

A long-term individual client, Mr. Tomiwa, who has been insured with NEM since 2018, also shared his satisfaction.

“NEM Insurance gives me peace of mind,” he said. “Once documentation is complete, my claims are paid promptly without any hassle.”

Management Reaffirms Commitment to Customers

Responding to the commendations, Mr. Andrew Ikekhua, Managing Director of NEM Insurance Plc, expressed appreciation to the company’s customers for their trust and loyalty over the years. He noted that NEM’s success is rooted in its customers’ unwavering support and feedback, which continue to shape the company’s operational improvements.

“We are grateful to our customers for believing in our vision,” Ikekhua said. “Our journey has always been about putting people first, and we are committed to walking with our clients through every challenge and success story.”

He reaffirmed that NEM Insurance is repositioning its operations to provide even more customer-centered solutions, emphasizing that the company’s ultimate goal is to “continue winning together with our customers.”

Strengthening Trust in Nigeria’s Insurance Sector

NEM Insurance’s recognition during Customer Service Week 2025 underscores its leadership in Nigeria’s insurance industry and its ongoing efforts to raise service standards. The company’s blend of innovation, transparency, and prompt claims management continues to inspire customer confidence and set benchmarks for others in the sector.

The National Insurance Commission (NAICOM) has urged stronger regional cooperation among West African countries to close the widening climate finance gap and boost resilience against climate-related shocks.

Speaking at the 2025 West Africa Insurance Companies Association (WAICA) Education Conference held in Lagos, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Omosehin, emphasized that insurance must be a key part of national economic planning to effectively manage climate risks and support long-term economic stability.

He called on insurers, reinsurers, and regulators across the region to embrace innovation and develop tailored financial products that address Africa’s unique climate challenges.

“To my colleagues across WAICA member states — insurers, reinsurers, and industry leaders — this is a call to action. We must innovate boldly, developing parametric and microinsurance products that reflect our region’s climate realities,” Omosehin stated.

Traditional Funding No Longer Enough

Omosehin warned that conventional budgetary responses are inadequate to deal with the rising financial and social impact of climate change.

“Like many other African nations, Nigeria faces a significant climate finance gap. Traditional budgetary approaches can no longer keep pace,” he said. “We must create financial instruments that help us anticipate shocks rather than merely react to them. When integrated into national planning, insurance becomes one of the most effective tools for climate risk management and resilience.”

Investing in Data and Collaboration

The NAICOM boss also highlighted the importance of data, technology, and climate modelling to improve risk assessment and insurance innovation. He called for a regional framework that enables countries to pool risks and resources, making insurance products more inclusive and affordable.

“We must work together across borders to build collective resilience. Expanding access to insurance for farmers, artisans, traders, and small business owners is essential to protecting the backbone of West Africa’s economies,” he added.

Nigeria’s Reform Agenda for a Stronger Insurance Sector

Omosehin noted that Nigeria is already taking bold steps to strengthen its insurance industry through the Nigeria Insurance Industry Reform Act (NIIRA) 2025. The Act modernizes regulations, introduces higher capital requirements, expands compulsory insurance to cover agricultural and environmental risks, and encourages public-private partnerships for infrastructure and climate adaptation.

“These reforms are not just technical adjustments — they are critical to our national preparedness and long-term sustainability,” he said.

A Collective Regional Response

Omosehin stressed that climate challenges require regional unity, blending regulation, innovation, and collaboration among governments, private sector players, and development institutions.

“Climate change knows no borders. Its impact is shared across nations, communities, and industries. Just as rain falls on many roofs, so too must our response be collective,” he concluded.

Background

In August, President Bola Ahmed Tinubu signed the Nigeria Insurance Industry Reform Act (NIIRA) 2025 into law — a landmark policy aimed at modernizing the sector, strengthening consumer protection, and supporting Nigeria’s goal of becoming a $1 trillion economy.

The Act empowers NAICOM to regulate all insurance and reinsurance businesses in Nigeria and sets the stage for a more innovative, inclusive, and climate-resilient insurance ecosystem.