Following circulars released in May and December of 2019, introducing new capital requirements for insurance companies in Nigerian and extending the deadline for recapitalization, the National Insurance Commission (NAICOM) on 3 June 2020 released another circular (NAICOM/DPR/CIR/25-04/2020) (the Circular) announcing its decision to extend and segment the recapitalization process in view of the realities of the COVID-19 pandemic.
Without a doubt, the pandemic has adversely impacted on the recapitalization efforts of insurance companies, consequently, a review of the recapitalization deadlines by NAICOM has become very necessary to provide adequate time for all stakeholders to manage the effects of the pandemic and consolidate their recapitalization efforts.
