The National Insurance Commission (NAICOM) has announced July 2026 as the deadline for issuing licences to insurance and reinsurance companies that meet the new Minimum Capital Requirement (MCR), marking a major milestone in the rollout of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Commissioner for Insurance, Olusegun Omosehin, disclosed the timelines in a notice issued in Abuja on Thursday, stressing that the date also represents the final compliance deadline for all operators.
According to him, NAICOM will begin implementing a Risk-Based Capital framework immediately after the deadline for companies that have met the stipulated capital benchmarks, with adequate transition periods provided.
“Under NIIRA 2025 and the guidelines issued by NAICOM, we have set clear expectations by specifying the MCR of N10 billion for life insurers, N15 billion for non-life insurers, and N35 billion for reinsurers,” Omosehin said. “These timelines are firm. They reflect our commitment to a transparent, orderly, and risk-based transition to a stronger capital regime.”
He said the recapitalisation drive will enhance insurers’ solvency and underwriting capacity, enabling them to write larger risks and retain more business within the domestic market. Stronger capitalisation, he added, is expected to boost public trust, attract investment, and encourage mergers and acquisitions that improve scale and efficiency.
Omosehin also noted that a more robust capital base would position Nigerian insurers for greater competitiveness across Africa, particularly under the African Continental Free Trade Area (AfCFTA). Stronger balance sheets, he said, would allow operators to pursue cross-border opportunities, develop regional products and participate in large infrastructure and trade-related risks.
“Recapitalisation is the passport to that future,” he said.
NIIRA 2025, signed into law on August 5 by President Bola Tinubu, updates and consolidates Nigeria’s insurance laws, introducing sweeping reforms including higher capital thresholds and mandatory timelines for claims settlement.
