The National Insurance Commission (NAICOM) has mandated all insurance and reinsurance firms operating in Nigeria to present their recapitalisation strategies by September 30.
This directive comes in the wake of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, aiming to facilitate a smooth and effective enforcement of the updated capital requirements.
Under NIIRA 2025, the minimum capital requirement for non-life insurance companies has been increased to N15 billion, while life insurance companies must now maintain a minimum capital of N10 billion.
Reinsurance firms face the most significant hike, with their capital threshold now set at N35 billion.
In a circular issued on September 8, 2025, Oluwatoyin Charles, Director of the Supervision Directorate, emphasized that this regulatory framework is intended to fortify the insurance sector, boost financial stability, and ensure the seamless adoption of the new capital standards.
NAICOM underscored that adherence to NIIRA 2025 is compulsory and cautioned that any insurer or reinsurer failing to comply will face stringent enforcement actions.
The commission specified that submissions must include a board resolution affirming compliance, capital status based on the 2024 audited financial statements and the second-quarter returns for June 2025, a declaration of statutory deposits held with the Central Bank of Nigeria (CBN), and a comprehensive plan detailing the sources and timelines for new capital infusion.
“Companies planning to raise funds through the Capital Markets are required to submit their recapitalisation plans on a file-and-use basis,” the circular stated.
“Firms intending to pursue mergers or acquisitions must submit their proposals and subsequently comply with the relevant guidelines and existing insurance legislation.
“Additionally, composite companies opting to discontinue certain lines of insurance business must provide a Portfolio Transfer and Run-Off Plan.”
NAICOM also directed all companies to submit monthly progress reports on their recapitalisation efforts within 10 working days after the end of each month.
“These progress reports should include the insurer’s Minimum Capital Requirement (MCR) status calculated according to the prescribed MCR Template, milestones achieved, and actions taken to fulfill the recapitalisation plan,” the commission added.
Babajide Okeowo
