The National Association of Nigerian Students (NANS) has thrown its weight behind the recently concluded recapitalisation of Nigeria’s insurance industry, describing the exercise as a critical reform for strengthening insurers’ capacity, protecting policyholders and supporting the country’s economic growth ambitions.
Akinteye Babatunde Afeez, president of NANS National Secretariat, said the higher capital requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 would provide the foundation for a stronger and more resilient insurance industry capable of supporting larger investments, infrastructure and businesses.
Afeez said NANS was supporting the reform because the strength of the insurance industry has implications beyond insurers, extending to businesses, investors, households, students and the wider economy.
“We recognise the strategic importance of a strong, modern and resilient insurance sector to national economic development,” Afeez said in a statement.
He commended the Federal Government under President Bola Ahmed Tinubu for initiating reforms aimed at strengthening the economy and positioning Nigeria for sustainable growth, while also praising the National Insurance Commission (NAICOM), led by Commissioner for Insurance Olusegun Ayo Omosehin, for implementing the industry reforms.
According to him, recapitalisation should not be viewed merely as a regulatory compliance exercise but as an intervention designed to address longstanding capacity constraints in the insurance market.
“For decades, insufficient capital limited the capacity of many insurance operators to meet growing market demands and support large-scale economic activities. The recapitalisation exercise was therefore not merely a regulatory requirement but a strategic intervention designed to strengthen insurers and ensure prompt settlement of legitimate claims,” he said.
NANS’ endorsement comes after the conclusion of the recapitalisation exercise, which required insurers to raise fresh capital to meet new minimum capital requirements under NIIRA 2025.
The association said a stronger capital base would enable insurers to take on larger risks, support business continuity and improve their ability to absorb losses, while creating greater confidence among policyholders and investors.
Afeez said no modern economy could function effectively without an insurance industry with the financial capacity to protect investments and absorb risks.
“No modern economy can thrive without a vibrant insurance industry capable of protecting investments, facilitating business continuity, absorbing risks, supporting infrastructure development and promoting financial confidence across all sectors,” he said.
He therefore described the recapitalisation as an important component of Nigeria’s broader economic reform programme and urged stakeholders to support its implementation.
The NANS president also highlighted the potential benefits of the insurance reforms for young Nigerians, particularly through financial inclusion, employment, entrepreneurship and professional development.
He said the new regulatory framework could help create opportunities for students and graduates in a sector whose contribution to the Nigerian economy remains below its potential.
Beyond recapitalisation, NANS commended NAICOM for its focus on consumer protection and claims settlement, particularly its stated zero-tolerance approach to the non-payment of genuine claims.
Afeez said stronger regulation and better claims settlement were essential to rebuilding public confidence in insurance and encouraging more Nigerians to use insurance as a financial risk-management tool.
He also welcomed the Insurance Policyholders Protection Fund established under NIIRA 2025, describing it as an important mechanism for protecting policyholders against losses arising from circumstances beyond their control.
NANS urged NAICOM to deepen public awareness of the new protections available to policyholders, arguing that regulatory reforms would have greater impact if consumers understood their rights and the safeguards available to them.
The students’ body also drew attention to NAICOM’s investments in tertiary education through the Insurance Education Fund and related initiatives, saying interventions in ICT centres, laboratories and other academic infrastructure had benefited students across higher institutions.
Afeez said NANS would continue to support insurance awareness and financial literacy among students, promote insurance as a career option for young Nigerians and encourage greater participation in youth-focused insurance programmes.
“We stand with every Nigerian student, every policyholder, every investor and every citizen who desires a transparent, efficient and globally competitive insurance industry,” he said.
He also urged stakeholders to allow the reforms to mature, stressing that the transformation of the insurance sector should be sustained beyond the recapitalisation exercise.
According to him, the ultimate test of the reforms will be their ability to translate stronger capital and regulation into greater underwriting capacity, improved claims experience, wider insurance penetration and tangible economic opportunities.
“The transformation of Nigeria’s insurance sector is a transformation that serves the interests of present and future generations. It must be protected, sustained and driven to its logical conclusion,” Afeez said.
