Nigeria Completes Insurance Recapitalisation Exercise as 43 Firms Meet New Capital Rules

August 4, 2026
By Mintesinot Nigussie

Nigeria’s National Insurance Commission (NAICOM) has completed a 12-month insurance sector recapitalisation programme, with 43 insurance and reinsurance companies meeting new minimum capital requirements introduced under the Nigeria Insurance Industry Reform Act (NIIRA) 2025. The regulator said the exercise marks a major restructuring milestone for the insurance industry, aimed at improving financial strength, increasing underwriting capacity and strengthening the sector’s role in supporting economic growth.

The recapitalisation programme followed the enactment of NIIRA 2025, which was signed into law on July 31, 2025, as part of the federal government’s financial sector reform agenda targeting a US$1 trillion economy by 2030. NAICOM said the implementation process was designed to provide regulatory oversight, ensure transparency and support insurance operators in meeting the new capital thresholds within the required period.

The regulator issued guidelines covering minimum capital requirements, eligible capital instruments, admissible assets, verification procedures, reporting obligations and supervisory requirements during the transition period. According to NAICOM, the review and validation process strengthened the financial position of participating companies, attracted domestic and foreign investment and improved investor confidence in the insurance market.

Eight insurance companies that submitted evidence of compliance shortly before the deadline are still undergoing final verification and regulatory review, with the process expected to be completed within 14 days, the commission said. The regulator said the new capital requirements would allow insurers to take on larger and more complex risks, improve their ability to meet policyholder obligations and participate in long-term investments, including infrastructure financing.

The exercise will also support NAICOM’s move towards risk-based supervision, where regulatory capital requirements are aligned with the size, complexity and risk profile of individual insurance companies. NAICOM said it would continue monitoring the sector following the recapitalisation exercise, including companies undergoing final verification, industry restructuring and implementation of the Risk-Based Capital Framework. The commission added that the next phase would focus on improving insurance penetration, strengthening consumer protection and promoting innovation and digitalisation across the industry.

Source: FSX Business News