The National Insurance Commission (NAICOM) has announced that it has completed the recapitalisation exercise for 43 insurance and reinsurance companies within a year.
This announcement was made on Monday in a statement from NAICOM. The exercise followed Section 15 and other relevant parts of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which President Bola Ahmed Tinubu signed into law on 31 July 2025.
NAICOM reported that 43 companies met the new capital requirements before the deadline. Eight other companies that provided proof of compliance just before the deadline are still being verified.
The commission stated that the recapitalisation for these eight companies will be finished in 14 days.
NAICOM mentioned that this exercise is part of the Tinubu administration’s plan to transform the financial sector with a goal of reaching a $1 trillion economy by 2030.
The end of this exercise is seen as a key moment in changing Nigeria’s insurance industry. It also marks the start of a new chapter for insurance in the country.
“It represents a major step towards building a stronger, more resilient, adequately capitalised, professionally governed, and policyholder-focused insurance sector,” the statement said.
According to the commission, this exercise positions Nigeria’s insurance sector to boost the economy, promote financial inclusion, attract long-term investments, and contribute to the stability of the financial system.
Background
After NIIRA 2025 was enacted, NAICOM started a structured process to provide oversight, ensure transparency, and assist operators during the transition.
This process aimed to implement the new minimum capital requirements effectively within the set compliance period.
To ensure the process was orderly and transparent, the commission released guidelines for the Minimum Capital Requirements (MCR) for insurance and reinsurance companies in Nigeria.
These guidelines detailed minimum capital requirements under NIIRA 2025, what capital could be used, acceptable and unacceptable assets, procedures for verification, timelines, reporting duties, and expectations for supervision.
Through careful review and validation, the recapitalisation exercise has boosted Nigeria's insurance industry significantly, according to the commission.
NAICOM added that the exercise has made operators more financially resilient and attracted significant domestic and foreign investments, restoring strong investor confidence.
Resilient industry
Nigeria’s insurance industry is starting a new phase of development. This phase is based on stronger capital and better financial strength to manage larger and more complex risks in key sectors of the economy.
Raising the minimum capital will help insurers meet their obligations to policyholders quickly, handle new risks, support infrastructure projects, and compete better both regionally and globally.
The recapitalisation also lays a stronger base for better risk-based supervision from the commission. This will ensure that regulatory capital matches the nature, size, complexity, and risk level of each licensed operator.
Market development
The commission assured policyholders, investors, insurance operators, development partners, and the public that it will continue to strengthen consumer protection. This will happen as NIIRA 2025 is implemented alongside modernising Nigeria’s insurance sector through innovation and technology.
“Our commitment is to build a fair, stable, innovative, inclusive, and globally competitive insurance market that earns public trust and provides lasting value to policyholders and the Nigerian economy,” NAICOM stated.
The commission promised to keep engaging with stakeholders and provide updates on supervisory actions after the recapitalisation, companies being verified, industry restructuring, and other initiatives aimed at boosting insurance penetration and confidence in Nigeria’s insurance industry.
“The successful end of this recapitalisation is not the end but the beginning. It marks the start of a new era where stronger institutions and better governance will make insurance work for every Nigerian,” the commission added.
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