Mr. O. S. Thomas
Commissioner for Insurance
National Insurance Commission
The National Insurance Commission (NAICOM) has fixed August 30, 2020 for commencement of submission of monthly recapitalisation progress by operators in the Nigerian insurance sector.
In a circular to operators, the Commission reiterates that the Minimum Paid-up Share Capital shall be through any or a combination of the following:
- Existing paid-up share capital;
- Cash payment for new shares;
- Retained earnings – capitalisation of undistributed profits;
- Payment in kind (such as properties, T-Bills, Shares, Bonds, etc.) for new shares issued – which must be converted to cash not later than three (3) months to the recapitalisation deadline; and
- Share premium.
NAICOM also stated that all mergers for the purpose of meeting the first phase of 30th November, 2020 recapitalisation shall be irreversible except with a written approval of the Commission while commencement of capital verification exercise by NAICOM is slated for September 21.
The Commission also fixed February 26, 2021 for issuance of letters of compliance.