NAICOM Concludes Recapitalisation Exercise as 43 Insurers Meet New Capital Threshold

The National Insurance Commission (NAICOM) has concluded the insurance industry’s 12-month recapitalisation exercise, with 43 insurance and reinsurance companies meeting the new minimum capital requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

The exercise, conducted pursuant to Section 15 of the Act and other relevant provisions, is expected to strengthen insurers’ balance sheets, improve underwriting capacity and reinforce the industry’s role in supporting long-term economic growth.

However, eight insurance companies are yet to secure final regulatory clearance after submitting evidence of compliance shortly before the statutory deadline.

In a statement on Saturday, the Commission said the affected firms are undergoing “final verification and regulatory review”, a process it expects to conclude within 14 days.

The recapitalisation exercise followed the enactment of the NIIRA 2025, signed into law by President Bola Tinubu on July 31, 2025, as part of the administration’s financial sector reforms aimed at supporting Nigeria’s ambition of building a US$1 trillion economy by 2030.

To implement the new capital regime, NAICOM issued guidelines detailing the minimum capital requirements, admissible assets, eligible capital instruments, reporting obligations and supervisory expectations for insurers and reinsurers.

According to the Commission, the exercise involved an extensive process of review, verification and validation of submissions by licensed operators.

“The recapitalisation exercise has delivered a major boost to the Nigerian insurance industry. It has enhanced the financial resilience of operators, attracted substantial domestic and foreign investment, and rekindled strong investor confidence,” NAICOM said.

Higher Capital Expected to Improve Industry Capacity

The Commission said the stronger capital base would enable insurance companies to underwrite larger and more sophisticated risks, particularly across strategic sectors of the economy, while improving their capacity to meet policyholder obligations.

“The increase in minimum capital will improve insurers’ ability to honour policyholder obligations promptly, absorb emerging risks, support infrastructure and other long-term investments, and compete more effectively within regional and global insurance markets,” it said.

NAICOM added that the recapitalisation provides a stronger foundation for implementing its risk-based supervisory framework by ensuring regulatory capital reflects the scale and complexity of each operator’s business.

Although the Commission declared the recapitalisation exercise complete, regulatory attention will now focus on the eight insurers whose compliance documents remain under review.

NAICOM did not disclose the identities of the companies or indicate the potential regulatory implications if they fail to satisfy the verification process within the stipulated timeline.

The Commission, however, said it would continue to engage stakeholders and provide updates on post-recapitalisation supervisory actions, companies undergoing final verification, industry restructuring developments and the implementation of the Risk-Based Capital Framework.