Business Journal

Insurance

‘NAICOM Should Extend Recapitalisation Deadline to 2021’

Mr. Tope Smart

Chairman

Nigerian Insurers Association

An operator in the insurance industry has enjoined the National Insurance Commission (NAICOM) to extend the deadline given the market to recapitalise from December 31, 2020 to 2021 in view of the market disruptions and uncertainties created by the coronavirus crisis in Nigeria and around the world.

He said the prevailing situation has made all the recapitalisation strategies and game-plans by operators unrealistic and largely overtaken by events of the moment.

The operator told Business Journal thus: “It is important for the market to appeal to NAICOM to extend the recapitalisation deadline from December 31, 2020 to 2021 because of this coronavirus issue. If the COVID-19 problem does not go away by the third quarter of 2020, it would be rather difficult for many operators to meet the December 31, 2020 recapitalisation deadline set by NAICOM. The reality is that the current situation is adversely affecting all our strategies and plans to recapitalise on or before the deadline. I believe that if the market decides to approach the regulator on this issue as a body, something positive could be done.”

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