NAICOM sets July 2026 deadline for N35bn insurance recapitalisation
The National Insurance Commission (NAICOM) has announced the commencement of the insurance industry recapitalisation exercise, effective 31 July 2025, following the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and its assent by President Bola Tinubu on the same day.
In a circular dated 12 August 2025 and signed by Usman Jankara, deputy commissioner for insurance, the Commission set 30 July 2026 as the deadline for compliance with the new capital requirements.
Under NIIRA 2025, the minimum capital requirement (MCR) has been raised to N10 billion for life insurance companies, N15 billion for non-life, N25 billion for composite, and N35 billion for reinsurance firms. The Act also introduces a risk-based capital (RBC) framework for the industry.
NAICOM said the new thresholds took effect from the date of presidential assent, giving operators 12 months to meet the standards. It added that guidelines on the recapitalisation process would be issued in due course, covering capital composition, acceptable forms of capital, verification procedures, qualifying assets, and computation templates.
The Commission stressed that encumbered assets, those without perfected title, and those not in an operator’s full possession will not count towards meeting the MCR. Assets above prudential thresholds or those that fail to meet prescribed criteria will also be excluded.
During the exercise, NAICOM will verify assets, issue new certificates, collect relevant fees, and engage stakeholders. It assured operators that the implementation process would be transparent and fair.
“All insurance and reinsurance companies are required to commence internal preparations, outline their recapitalisation plan, engage proactively, and take immediate steps to comply with the new minimum capital requirements within the stipulated 12-month period,” the Commission said.
