The National Insurance Commission (NAICOM) has directed insurance and reinsurance firms in Nigeria to begin immediate recapitalisation following the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law by President Bola Ahmed Tinubu on July 31, 2025.
The Commission has given operators a 12-month window, ending July 31, 2026, to meet the new Minimum Capital Requirements (MCRs) or face regulatory actions, including merger, liquidation, or other resolution measures.
Under the NIIRA 2025, the capital thresholds have been significantly raised:
- ₦10 billion for life insurers,
- ₦15 billion for non-life insurers,
- ₦25 billion for composite firms, and
- ₦35 billion for reinsurance companies.
The Act also introduces a Risk-Based Capital (RBC) framework, aligning the Nigerian insurance sector more closely with global regulatory standards.
In a statement, NAICOM said:
“Following the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and its assent by the President, all insurance and reinsurance companies are hereby notified of the commencement of the recapitalisation exercise. The new MCR takes immediate effect, and all operators must achieve full compliance on or before July 30, 2026.”
The recapitalisation drive is expected to strengthen the financial resilience of Nigerian insurers, enhance risk management, and improve the sector’s ability to underwrite larger and more complex risks.
