SUNU Assurances Shareholders Approve ₦9bn Recapitalisation to Meet NIIRA 2025 Deadline

Shareholders of SUNU Assurances Nigeria Plc have given overwhelming approval for the company’s proposed ₦9 billion recapitalisation plan, a strategic move designed to align the insurer with the stringent capital requirements of the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The resolution was passed at an Extraordinary General Meeting (EGM) held in Lagos, which recorded a strong turnout of investors and stakeholders.

The NIIRA 2025 framework, which represents one of the most significant regulatory reforms in the sector in over a decade, raised the Minimum Capital Requirement (MCR) for non-life insurance companies from ₦3 billion to ₦15 billion. With a compliance deadline of July 30, 2026, insurers are expected to bolster their capital bases to remain competitive and fully licensed under the new regime.

• interswitch promotes Digital solution for Real Estate in Nigeria

• CrusaderSterling Pensions Earns AA- Rating Upgrade

Speaking at the meeting, the Chairman of SUNU Assurances, Mr. Kyari Abba Bukar, explained that the recapitalisation had become an urgent necessity. He disclosed that as at September 30, 2025, the company requires ₦9 billion to close its capital gap in line with the new statutory requirement. According to him, strengthening the company’s capital position is essential for maintaining regulatory compliance, expanding underwriting capacity, improving claims responsiveness, and attracting new investment.

Bukar emphasised that the capital raise is not merely a compliance exercise but a strategic opportunity to reinforce the company’s market presence. “This recapitalisation will significantly enhance our balance sheet, deepen our underwriting potential, and better position us to compete in an industry that is undergoing major regulatory transformation,” he told shareholders.

In addition to raising fresh capital, the company is also addressing its free-float deficiency on the Nigerian Exchange (NGX). Bukar confirmed plans to widen public shareholding as part of the capital-raising effort, which is expected to improve liquidity and strengthen corporate governance.

The Managing Director/CEO, Mr. Samuel Ogbodu, provided further insight into the ownership restructuring expected during the process. He revealed that the SUNU Group currently holding 83 percent equity in SUNU Assurances intends to reduce its stake to 70 percent. This is aimed at creating more room for Nigerian investors to participate in the company’s growth, broaden indigenous ownership, and support regulatory compliance related to share distribution.

According to Ogbodu, the resolutions passed at the EGM provide full and transparent authorisation for management to commence the capital-raising process without delay. “This meeting was crucial for ensuring shareholder involvement and alignment. With this approval, we are now fully empowered to engage investors and mobilise the required capital,” he said.

Industry analysts note that SUNU’s proactive approach reflects broader movements across the insurance sector, where firms are racing to bridge their capital gaps ahead of the NIIRA 2025 deadline. The reforms are expected to drive market consolidation, elevate industry standards, and improve resilience among insurance operators.

The company’s recapitalisation journey, once completed, is anticipated to strengthen its financial stability, unlock new business opportunities, and position SUNU Assurances as a stronger player in Nigeria’s evolving insurance landscape.