The National Insurance Commission (NAICOM) is set to raise the minimum capital requirement for microinsurance firms to ₦3 billion, marking a significant shift in Nigeria’s insurance landscape.
The new benchmark, contained in the Nigeria Insurance Industry Reform Act 2025, replaces the existing tiered structure of ₦40 million for unit operators, ₦100 million for state firms, and ₦600 million for national players.
Although NAICOM had earlier announced revised capital thresholds for other segments—₦10 billion for life insurance, ₦15 billion for general business, and ₦35 billion for reinsurers—the microinsurance segment had remained undefined until now. Industry sources indicate the ₦3 billion requirement will take effect this month.
The reform is aimed at strengthening the financial capacity of microinsurers and expanding coverage for low-income earners, micro-entrepreneurs, and underserved communities nationwide.
Under the Act, microinsurance products must remain simple, affordable, and accessible, with distribution channels spanning agents, cooperatives, NGOs, faith-based organisations, and digital payment platforms.
The legislation also mandates greater digitisation and collaboration across institutions, including the Central Bank of Nigeria, to deepen financial inclusion.
NAICOM is further tasked with developing regulatory frameworks to support microinsurance growth alongside takaful and agricultural insurance, positioning the segment as a critical driver of market expansion.
Licensed operators in the space include firms such as Goxi Micro Insurance Limited, Cassava Microinsurance Limited, CHI MicroInsurance Limited, and others.
