Nigeria’s insurance regulator said 43 insurance and reinsurance companies have met new minimum capital requirements introduced under sweeping industry reforms, marking a significant milestone in the country’s year long recapitalisation programme.
The National Insurance Commission (NAICOM) said eight additional insurers that submitted evidence of compliance shortly before the July 31 deadline are still undergoing final verification and regulatory review, a process expected to be completed within 14 days.
NAICOM said the higher capital thresholds are intended to strengthen the financial position of insurers, improve their ability to meet policyholder obligations, absorb emerging risks and support long term investments across Nigeria’s economy.
The recapitalisation exercise was carried out under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law by President Bola Tinubu last year as part of broader financial sector reforms aimed at improving stability and investor confidence.
Before the exercise, Nigeria had about 60 licensed insurance and reinsurance companies. Under the new regulations, life insurers are required to maintain a minimum capital base of 15 billion naira, non life insurers 25 billion naira, and reinsurance companies 45 billion naira.
“The successful conclusion of the exercise marks a defining milestone in the transformation of Nigeria’s insurance industry,” NAICOM said in a statement.
Nigeria’s insurance sector has long struggled with low market penetration and inadequate capital, limiting the capacity of domestic insurers to underwrite major risks in sectors such as oil and gas, aviation and infrastructure. The regulator believes stronger capitalisation will enable local firms to retain more high value risks and reduce reliance on foreign insurers.
NAICOM did not disclose the total amount of capital raised during the recapitalisation exercise.
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