Staco Insurance Plc has reported a significant financial deficit, with its shareholders’ funds plunging to a negative ₦4.221 billion. This alarming figure, revealed in the company’s 2026 financial updates, indicates that the insurer’s total liabilities now far exceed its total assets.
A negative equity position of this magnitude suggests that the company is technically insolvent, meaning if all its assets were sold today, it would still lack the funds to cover its outstanding debts and claims obligations.
The roots of this crisis trace back to years of delayed financial reporting and internal governance challenges. Staco only recently cleared a six-year backlog of audited results, a delay that led the Nigerian Exchange (NGX) to initiate delisting proceedings against the company in late 2024.
The massive hole in the balance sheet is primarily attributed to accumulated losses exceeding ₦13 billion, which have completely eroded the company’s share capital and reserves. These losses stem from high underwriting expenses, mounting claims, and a sharp decline in premium income as the company struggled to maintain its market share during its period of regulatory suspension.
Following the unfortunate passing of the former Managing Director, Mr. Wale Banmore, in early 2026, the board has appointed Nike Nihinlola as the acting Managing Director to spearhead a desperate turnaround strategy. Nihinlola, an industry veteran with nearly 30 years of experience, faces the uphill task of recapitalizing the firm to meet the National Insurance Commission (NAICOM) minimum capital requirements.
The company is currently exploring an emergency capital injection from new investors to prevent a total collapse and to satisfy the regulator’s solvency threshold, which the firm has consistently breached over the past three fiscal years.
Financial Snapshot: The Deficit Breakdown
The company’s latest statement of financial position highlights the severity of its “negative mismatch.” While total assets hover around ₦5.77 billion, total liabilities have surged past ₦9.84 billion. Key drivers of this debt include insurance contract liabilities and trade payables to reinsurers. To keep the doors open, the new management is reportedly considering a “sale and leaseback” of its primary investment properties, including its high-value land in Ikoyi, Lagos, to generate the immediate liquidity needed to settle pressing claims.
