Nigeria’s insurance industry is tackling long-standing solvency and capacity challenges through a phased recapitalisation programme aimed at strengthening underwriting capacity, restoring public confidence and supporting broader economic growth.
Industry operators say the Nigerian Insurance Industry Reform Act (NIIRA) 2025 provides a gradual transition framework that allows insurers to build capital sustainably while improving corporate governance, enhancing risk absorption and offering stronger protection to policyholders. Enacted in support of Nigeria’s ambition to build a one-trillion-dollar economy, the Act seeks to reposition the insurance sector for resilience, competitiveness and increased contribution to national development.
Under NIIRA 2025, minimum capital requirements have been raised to ₦15 billion for non-life insurers, ₦10 billion for life insurers, ₦25 billion for composite insurers and ₦35 billion for reinsurance companies, with full compliance required by July 30, 2026.
Recent disclosures indicate that insurers are adopting structured, market-sensitive approaches to recapitalisation rather than rushing to raise funds, signalling a cautious but deliberate response to the new regulatory thresholds.
Linkage Assurance Plc is among operators taking concrete steps, announcing plans to raise up to ₦16 billion to strengthen its balance sheet and support future growth, subject to regulatory approvals. In a filing with the Nigerian Exchange Ltd., the company said its board had been authorised to raise the funds through private placement, rights issue, public offer or a combination of these options. The exercise would involve an increase in authorised share capital, with new shares ranking pari passu with existing ordinary shares, alongside amendments to its Memorandum and Articles of Association in line with the Companies and Allied Matters Act (CAMA) 2020.
Sovereign Trust Insurance Plc has also moved to shore up its capital base, securing board approval to raise an initial ₦5 billion through a rights issue as part of a broader recapitalisation programme. The insurer disclosed that existing shareholder approval allows it to raise up to ₦20 billion, providing flexibility for subsequent funding rounds to strengthen liquidity, expand underwriting capacity and support long-term growth.
Regency Alliance Insurance Plc has announced plans to raise ₦15 billion through a combination of rights issue and private placement, following resolutions adopted at its 31st Annual General Meeting. Chairman of the company, Mr Clem Baiye, said the dual funding approach was approved to enable compliance with the new ₦15 billion minimum capital requirement for non-life insurers under NIIRA 2025.
SUNU Assurances Nigeria Plc has also aligned with the reform agenda, obtaining shareholder approval to raise ₦9 billion to close its capital gap. Chairman of the company, Mr Kyari Abba Bukar, said that as of September 2025, the insurer required ₦9 billion to fully meet the revised minimum capital requirement. He added that the board had been authorised to explore approved funding options, including rights issues, public offers, private placements and strategic investor participation, while also addressing free-float requirements on the Nigerian Exchange.
Veritas Kapital Assurance has received shareholder consent to raise about ₦15 billion through a private placement, following approval at its 48th Annual General Meeting in Abuja. Lasaco Assurance Plc has similarly secured shareholder approval to raise ₦25 billion through a combination of private placement and rights issue.
Chairman of Lasaco Assurance, Chief Mrs Maria Olateju Phillips, described the approval as a significant milestone toward meeting regulatory expectations and reinforcing the company’s market position. She said the initiative reflected the firm’s responsibility to safeguard shareholders’ investments and pursue sustainable growth, adding that improved performance over time would further strengthen investor confidence.
Guinea Insurance has earlier announced plans to convene an Extraordinary General Meeting to seek shareholder approval to raise up to ₦15 billion in additional capital.
Industry analysts say the growing number of recapitalisation initiatives suggests that insurers are responding positively to the reform framework through phased and realistic strategies that balance regulatory compliance with prevailing market conditions.
The National Insurance Commission (NAICOM) has also expressed satisfaction with the progress recorded so far, noting that the ongoing recapitalisation efforts are critical to building a stronger, more resilient insurance sector.
