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By Henry Uche
Insurers in Nigeria are stepping up efforts to meet new recapitalisation rules after the National Insurance Commission (NAICOM) deadline for statutory deposits expired on May 30, 2026.
The deadline required insurance and reinsurance companies to submit proof of their statutory deposits with the Central Bank of Nigeria, marking a key compliance step under the ongoing industry reforms. With the window now closed, the sector has crossed an important milestone in its wider push to strengthen financial stability.
The requirement is part of NAICOM’s Minimum Capital Requirement guidelines, which mandate firms to provide evidence of deposit payment on or before the set deadline.
The recapitalisation exercise is driven by the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law by President Bola Tinubu in July 2025. The law introduced higher capital thresholds aimed at improving the sector’s financial strength, protecting policyholders, and boosting confidence in the market.
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Under the new framework, life insurance companies are required to hold a minimum capital of N10 billion, non-life insurers N15 billion, and reinsurance firms N35 billion. Operators were given a 12-month transition period to comply or face regulatory action.
Although the statutory deposit phase has ended, attention is now shifting to the broader recapitalisation deadline of July 30, 2026, when all operators must fully meet the new capital requirements.
Industry analysts say the reforms could trigger stronger balance sheets, greater investor confidence, and possible consolidation within the sector ahead of the final deadline.
However, there is still uncertainty over whether NAICOM will grant an extension, as a large number of applications remain under review.
Some stakeholders also fear that a significant number of insurers may struggle to meet the new requirements.
