Lagos, Nigeria – SUNU Assurances Nigeria Plc has launched a rights issue to raise N2.08 billion (approximately $1.53 million USD) to strengthen its capital base and fund business expansion.
The company received approval from the Securities and Exchange Commission (SEC) for the offer, which is open to existing shareholders. This move comes as firms across Nigeria’s insurance sector work to meet stricter regulatory capital requirements.
The offer consists of over two billion new ordinary shares priced at N4.50 each. Shareholders are eligible to subscribe on the basis of five new shares for every fourteen shares they held as of February 12, 2026. The acceptance period for the rights issue began on April 13 and is scheduled to close on May 20, 2026.
This capital raise is part of a broader trend within the industry, driven by the Nigerian Insurance Industry Reform Act (NIIRA), which was enacted in 2025 to enforce recapitalization. According to Okay News, by prioritizing existing shareholders, SUNU Assurances is allowing them to consolidate their stakes while injecting necessary fresh capital into the business to enhance its underwriting capacity. The rights are also tradable on the Nigerian Exchange, giving shareholders the option to monetize their entitlements if they choose not to subscribe.
The offer price of N4.50 per share is slightly above the company’s closing stock price of N4.20 on April 13. While the stock saw significant gains in 2024, its value has decreased by over 23 percent year-to-date in 2026. The proceeds from this rights issue are expected to improve the company’s operational capacity and help it capture growth in Nigeria’s underpenetrated insurance market.
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