Recapitalisation naicom plans to retain 70 local content

You're referring to the recapitalization plan of the Nigerian Insurance Commission (NAICOM) to retain 70% local content in the insurance industry.

To recap, NAICOM, the regulatory body for the insurance industry in Nigeria, has introduced a recapitalization plan aimed at strengthening the industry and promoting local content. The plan, which was announced in 2020, requires insurance companies to recapitalize by increasing their minimum paid-up share capital.

As part of the plan, NAICOM has set a target of retaining 70% local content in the insurance industry. This means that insurance companies must ensure that at least 70% of their business is done with Nigerian companies, individuals, or government entities.

The rationale behind this policy is to promote the growth of the local economy, create jobs, and reduce the country's reliance on foreign capital. By increasing local content, insurance companies will be encouraged to invest in Nigerian businesses, infrastructure, and projects, which will have a positive impact on the economy.

To achieve this goal, NAICOM has introduced several measures, including:

  1. Increased minimum paid-up share capital: Insurance companies must increase their minimum paid-up share capital to N2 billion (approximately $5.3 million) for life insurance companies and N3.5 billion (approximately $9.3 million) for non-life insurance companies.
  2. Local content requirements: Insurance companies must ensure that at least 70% of their business is done with Nigerian companies, individuals, or government entities.
  3. Increased investment in Nigerian businesses: Insurance companies must invest at least 30% of their assets in Nigerian businesses, infrastructure, and projects.
  4. Enhanced risk management: Insurance companies must implement robust risk management practices to ensure that they are able to manage the risks associated with their local content investments.

The recapitalization plan is expected to have several benefits for the insurance industry and the Nigerian economy, including:

  1. Increased investment in Nigerian businesses: The plan is expected to attract more investment in Nigerian businesses, infrastructure, and projects, which will create jobs and stimulate economic growth.
  2. Improved risk management: The plan will encourage insurance companies to implement robust risk management practices, which will reduce the risk of losses and improve the overall stability of the industry.
  3. Increased local content: The plan will promote the growth of local content in the insurance industry, which will reduce the country's reliance on foreign capital and promote economic development.

Overall, the recapitalization plan is an important step towards promoting the growth and development of the insurance industry in Nigeria, and it is expected to have a positive impact on the economy and the lives of Nigerians.