43 Insurance firms scale recapitalisation hurdle, NAICOM concludes exercise

By Onu Okorie

Nigeria’s insurance sector has crossed a major regulatory milestone, with the National Insurance Commission NAICOM confirming that 43 insurance and reinsurance companies have successfully met the new minimum capital requirements set out under the Nigerian Insurance Industry Reform Act NIIRA 2025.

The Commission announced the completion of the twelve-month recapitalization exercise, describing it as a defining moment in the industry’s transformation. The exercise was carried out under Section 15 and related provisions of NIIRA 2025, which President Bola Ahmed Tinubu signed into law on July 31, 2025, as part of a broader push to grow Nigeria’s economy to $1 trillion by 2030.

According to NAICOM, eight additional companies that submitted evidence of compliance just before the statutory deadline are still undergoing final verification, with a decision expected within fourteen days.

After NIIRA 2025 took effect, NAICOM said it launched a structured implementation process to oversee the transition, support operators, and keep the exercise transparent. Central to that effort were the Commission’s Guidelines on the Implementation of Minimum Capital Requirements, which spelled out acceptable capital instruments, admissible assets, verification procedures, timelines, and reporting duties for insurers throughout the process.

NAICOM said the resulting review and validation process strengthened operators’ financial resilience and drew fresh domestic and foreign investment into the sector, boosting investor confidence in the industry.

Regulators say the higher capital base should translate into tangible benefits for policyholders and the wider economy. NAICOM expects insurers to be better able to pay claims promptly, absorb emerging risks, back long-term infrastructure investment, and compete more effectively in regional and global insurance markets.

The Commission also framed the exercise as a springboard for tighter, risk-based supervision going forward, saying it would help ensure that each operator’s regulatory capital matches its size, complexity, and risk profile.

NAICOM said it would continue to update stakeholders on developments including the outcome of the final verification process for the eight pending companies, broader industry restructuring, and the rollout of its Risk-Based Capital Framework.

The Commission thanked the Federal Government, industry operators, shareholders, professional bodies, and other stakeholders for their role in the exercise, and said the milestone marks the start of a new phase for the sector rather than an endpoint.

“The successful completion of this recapitalization exercise is not the destination but the foundation,” the Commission said, adding that it expects stronger institutions and governance to build public confidence in insurance across the country.