L-R: Chairman, Retreat Planning Committee, Oluwamuyiwa Aderibigbe and Executive Director (Technical), Continental Reinsurance Plc, Chukwuemeka Akwiwu at the annual retreat of the Risk, Audit, and Compliance Committee (RACC), a committee under NIA, held recently in Abeokuta, Ogun State.
The Executive Director (Technical), Continental Reinsurance Plc, Chukwuemeka Akwiwu, has urged insurance companies to embed strong governance practices as a core strategy for managing the fresh capital they are required to raise under the NIIRA Act 2025.
He made this call at the annual retreat of the Risk, Audit, and Compliance Committee (RACC), a technical committee under the Nigerian Insurers Association (NIA), held in Abeokuta, Ogun State recently.
Speaking on the theme of the retreat, “Insurance Industry Recapitalisation: Strengthening Governance Activities for Maximum Benefits”, Akwiwu emphasized that while new capital provides much-needed strength to insurers’ balance sheets, it is governance that ensures capital is deployed wisely, risk is underwritten responsibly, and companies are positioned for sustainable growth.
“With recapitalisation, we now have the capacity to underwrite more and take on larger risks,” he said. “But that comes with the responsibility to ensure we are taking on the right risks, with proper exposure limits and necessary protections in place. Governance and control must guide this process.”
He highlighted that capital, while necessary, is never permanent unless it is well managed.
“Capital is fleeting, it comes and goes. But it is always willing to stay where strong governance structures are in place,” Akwiwu noted. “Governance is the multiplier of capital. It doesn’t just preserve capital; it enhances its impact.”
Akwiwu welcomed the increased capital requirements which are N10bn for life, N15bn for non-life, N25bn for composite, and N35bn for reinsurance firms, but pointed out that capital alone will not transform the industry. He called for company boards and leadership to go beyond compliance and embed a culture of risk management and strategic oversight at every level of operation.
“This is not business as usual. Every individual in the value chain must take ownership of the process and ensure that decisions are not made first and then justified later. Compliance must come first, not as a reaction, but as a guiding principle,” he emphasized.
He also urged insurers to revisit the composition of their boards, perform skills gap analyses, and ensure that board members are chosen based on merit and value addition, not personal relationships.
“Gone are the days of sitting on boards because your friend owns the company. You must bring value, expertise, and accountability,” he said.
Akwiwu expressed optimism about the future of Nigeria’s insurance industry and its role in contributing to the country’s $1 trillion economy. “Stronger capital, aligned with stronger governance, will not only stabilize our companies but increase public trust in our products and services, creating a cycle of growth and deeper penetration.”
He encouraged continuous engagement with NAICOM, the industry regulator, noting that collaboration and transparency will be key to ensuring the success of the ongoing recapitalisation process.
