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The National Insurance Commission (NAICOM) has announced the completion of the insurance sector recapitalisation exercise introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, confirming that 43 insurance and reinsurance companies have met the new minimum capital requirements.
The development marks the end of the 12-month compliance period granted to operators following the enactment of the new insurance law signed by President Bola Ahmed Tinubu on July 31, 2025.
In a statement issued by the Commission, NAICOM described the successful completion of the exercise as a major milestone in the transformation of Nigeria’s insurance industry.
What they are saying
According to the Commission, 43 insurance and reinsurance companies have been verified and confirmed as compliant with the new capital thresholds stipulated under the reform law.
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NAICOM, however, disclosed that eight companies that submitted evidence of compliance shortly before the July 31, 2026 deadline are currently undergoing final verification and regulatory review.
The Commission said the review process is expected to be concluded within 14 days.
- “The successful conclusion of the exercise marks a defining milestone in the transformation of Nigeria’s insurance industry and signals the beginning of a new era for insurance in Nigeria.
- “It represents a major step towards building a stronger, more resilient, adequately capitalized, professionally governed, and policyholder-focused insurance sector that is better positioned to support national economic growth, deepen financial inclusion, mobilize long-term investment capital, and contribute meaningfully to the stability of Nigeria’s financial system,” NAICOM stated.
Get up to speed
Following the signing of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law, NAICOM commenced the implementation of a recapitalisation programme aimed at strengthening the financial capacity of insurance operators.
The Commission granted insurers and reinsurers a 12-month transition period, running from August 2025 to July 31, 2026, to comply with the revised minimum capital requirements.
To guide the process, NAICOM issued the Guidelines on the Implementation of Minimum Capital Requirements (MCR) for Insurance and Reinsurance Companies in Nigeria, which outlined admissible capital instruments, verification procedures, reporting obligations, supervisory expectations and regulatory timelines.
According to the Commission, the exercise was conducted through a comprehensive review, verification and validation process designed to ensure transparency, credibility and regulatory integrity.
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NAICOM said the recapitalisation programme has significantly strengthened the industry by improving operators’ financial resilience, attracting fresh domestic and foreign investment, and restoring investor confidence.
The Commission noted that the higher capital base would enhance insurers’ ability to underwrite larger and more complex risks, meet policyholder obligations promptly and support long-term investments in key sectors of the economy.
- “The increase in minimum capital will improve insurers’ ability to honour policyholder obligations promptly, absorb emerging risks, support infrastructure and other long-term investments, and compete more effectively within regional and global insurance markets.”
The regulator added that the exercise would also provide a stronger foundation for risk-based supervision by ensuring that capital levels are aligned with the size, complexity and risk profile of individual operators.
Focus shifts to post-recapitalisation supervision
NAICOM said it would continue to engage stakeholders as the industry transitions into the next phase of reform under NIIRA 2025.
The Commission reaffirmed its commitment to strengthening consumer protection, promoting sound market conduct, accelerating insurance penetration and modernising the sector through technology and innovation.
- “Our unwavering commitment remains to build a fair, stable, innovative, inclusive, and globally competitive insurance market that inspires public confidence and delivers lasting value to policyholders and the Nigerian economy.”
The regulator also said it would provide periodic updates on post-recapitalisation supervisory actions, the status of companies undergoing final verification, implementation of the Risk-Based Capital Framework and other strategic initiatives aimed at deepening confidence in the insurance industry.
What you should know
The recapitalisation exercise was introduced to strengthen the financial capacity of insurance companies and improve their ability to absorb risks and settle claims.
Prior to the deadline, the Chairman of the Nigerian Insurers Association (NIA), Mrs. Ebelechukwu Nwachukwu, disclosed that more than 70% of insurance companies had completed the independent verification process required under the programme.
The completion of the exercise represents one of the most significant regulatory overhauls in the Nigerian insurance sector in recent years and is expected to reshape the industry’s competitive landscape in the years ahead.
