Nigeria’s insurance industry is bracing for sweeping consolidation moves following the signing of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which introduces significantly higher capital thresholds for operators.
Under the Act, minimum capital requirements have been raised to ₦10 billion for life insurers, ₦15 billion for non-life, ₦25 billion for composite firms, and ₦35 billion for reinsurers. Companies are required to meet the new thresholds within 12 months, a timeline that is already triggering talks of mergers, acquisitions, and capital market activity.
Industry insiders say insurers are exploring multiple options, including rights issues, initial public offerings (IPOs), strategic mergers among stronger players, and acquisitions of weaker firms. Forced mergers and outright exits are also on the table for those unable to raise capital.
The National Insurance Commission (NAICOM) has begun working closely with the Securities and Exchange Commission (SEC), the Corporate Affairs Commission (CAC), and the Nigerian Exchange Limited (NGX) to smoothen the recapitalisation process and ensure investor confidence.
Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, has repeatedly stressed that recapitalisation is central to strengthening the sector and aligning it with President Bola Tinubu’s vision of building a $1 trillion economy.
“The recapitalisation exercise is not just about compliance. It is about stabilising the industry, improving risk capacity, and ensuring the sector makes meaningful contributions to Nigeria’s broader economic agenda,” Omosehin said during a recent stakeholder engagement.
CAC Registrar-General, Barr. Hussaini Magaji, pledged his agency’s full cooperation, promising expedited clearances, data-sharing support, and regulatory concessions to aid companies through the transition.
With 67 licensed insurance firms currently operating—comprising 13 life insurers, 27 non-life companies, 12 composites, and three reinsurers—the industry is widely expected to see a wave of consolidation as players reposition for survival and growth under the new regime.
