Strong governance, not just capital, will drive insurance future under NIIRA Act – Akwiwu

As Nigeria’s insurance industry braces for a transformative wave under the NIIRA Act 2025, the Executive Director (Technical) of Continental Reinsurance Plc, Chukwuemeka Akwiwu, has issued a clear call to action: prioritize governance alongside capital.

Speaking at the annual retreat of the Risk, Audit, and Compliance Committee (RACC) of the Nigerian Insurers Association (NIA), held recently in Abeokuta, Ogun State, Akwiwu emphasized that while recapitalization strengthens balance sheets, only strong governance can ensure sustainable growth.

The retreat, themed “Insurance Industry Recapitalization: Strengthening Governance Activities for Maximum Benefits”, provided a platform to reflect on the implications of the new capital requirements—N10 billion for life, N15 billion for non-life, N25 billion for composite, and N35 billion for reinsurance companies.

Strong governance

“With recapitalization, we now have the capacity to underwrite more and take on larger risks,” Akwiwu noted. “But that also increases our responsibility. Governance must lead the way—defining exposure limits, guiding underwriting decisions, and embedding control mechanisms.”

He cautioned that capital, while essential, is not a guaranteed asset unless managed with diligence.

“Capital is fleeting. It comes and goes. But it tends to stay where strong governance structures are in place,” Akwiwu said. “Governance is the multiplier of capital—it preserves it and amplifies its impact.”

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Akwiwu stressed that boards and leadership teams must move beyond box-ticking compliance. True transformation, he argued, lies in embedding a culture of strategic oversight and risk management across every layer of the organization.

> “This is not business as usual. Compliance must not be reactive—it should be a proactive guiding principle. Every stakeholder must take ownership,” he asserted.

He also urged a shift in boardroom dynamics, calling for merit-based appointments and rigorous skills gap analyses.

> “Gone are the days when board seats were filled by friends or political considerations,” he said. “We must choose directors based on the value they bring—on their ability to hold management accountable and steer the company toward its goals.”

Looking ahead, Akwiwu expressed optimism about the sector’s role in Nigeria’s aspiration toward a $1 trillion economy. He said the alignment of robust capital with credible governance would deepen public trust and broaden insurance penetration.

He concluded by advocating closer collaboration with NAICOM, the industry regulator, stressing that transparency and stakeholder engagement would be crucial for a smooth and successful recapitalization process.

Strong governance, not just capital, will drive insurance future under NIIRA Act – Akwiwu