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From Adanna Nnamani, Abuja
The National Insurance Commission (NAICOM) has announced the successful completion of the insurance industry’s 12-month recapitalisation exercise, revealing that 43 insurance and reinsurance companies have met the new minimum capital requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The Commission, in a statement issued on Sunday, said the exercise marks a major turning point for Nigeria’s insurance industry and lays the foundation for a stronger, more resilient and globally competitive sector.
NAICOM explained that the recapitalisation programme was carried out in line with Section 15 and other relevant provisions of NIIRA 2025, which was signed into law by President Bola Ahmed Tinubu on July 31, 2025, as part of the Federal Government’s financial sector reforms aimed at building a $1 trillion economy by 2030.
According to the Commission, the exercise has strengthened the financial capacity of insurance companies, improved investor confidence and positioned the industry to play a bigger role in economic development.
“The successful conclusion of the exercise marks a defining milestone in the transformation of Nigeria’s insurance industry and signals the beginning of a new era for insurance in the country,” the Commission said.
It added: “It represents a major step towards building a stronger, more resilient, adequately capitalised, professionally governed and policyholder-focused insurance sector that is better positioned to support national economic growth, deepen financial inclusion, mobilise long-term investment capital and contribute meaningfully to the stability of Nigeria’s financial system.”
NAICOM said it introduced detailed implementation guidelines after the new insurance law came into effect to ensure that operators complied with the new capital requirements in a transparent and orderly manner. The guidelines covered eligible capital, admissible assets, reporting obligations, verification procedures and regulatory timelines.
Following the review and verification process, the Commission confirmed that 43 insurance and reinsurance firms successfully met the new capital threshold.
However, it disclosed that eight insurance companies that submitted evidence of compliance shortly before the July 31 deadline are still undergoing final verification and regulatory review.
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NAICOM said the verification process for the affected companies would be concluded within 14 days.
The Commission expressed confidence that the recapitalisation exercise would enable insurers to underwrite larger and more complex risks, honour claims more promptly and support long-term investments in critical sectors of the economy.
It added that stronger capital would also improve the industry’s competitiveness in regional and international markets while strengthening the Commission’s risk-based supervisory framework.
According to NAICOM, “Nigeria’s insurance industry is now entering a new phase of development founded on stronger capital, improved financial resilience and enhanced capacity to underwrite larger and more sophisticated risks across strategic sectors of the economy.”
“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 added.
The Commission also reassured policyholders, investors and other stakeholders that it would continue to strengthen consumer protection, promote sound market practices and accelerate insurance penetration across the country through innovation and digital transformation.
“Our unwavering commitment remains to build a fair, stable, innovative, inclusive and globally competitive insurance market that inspires public confidence and delivers lasting value to policyholders and the Nigerian economy,” NAICOM said.
The regulator added that it would continue to engage stakeholders and provide updates on post-recapitalisation supervisory actions, companies undergoing final verification, implementation of the Risk-Based Capital Framework and other initiatives aimed at strengthening the insurance industry.
NAICOM thanked the Federal Government, investors, shareholders, insurance operators, professional bodies, development partners and other stakeholders for their support throughout the recapitalisation process.
“The successful completion of this recapitalisation exercise is not the destination but the foundation. It marks the beginning of a new era in which stronger institutions, stronger governance and stronger public confidence will make insurance work better for every Nigerian,” the Commission stated.
