NAICOM certifies 43 insurers, reinsurers meet new capital requirements as recapitalisation exercise ends

The National Insurance Commission (NAICOM) has announced the successful completion of the insurance sector recapitalisation exercise, disclosing that 43 insurance and reinsurance companies have met the new minimum capital requirements prescribed under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

The Commission, however, said eight insurance companies that submitted evidence of compliance shortly before the statutory deadline are undergoing final verification and regulatory review, with the process expected to be concluded within the next 14 days.

In a statement issued on Monday, NAICOM described the completion of the 12-month recapitalisation programme as a landmark achievement that signals a new phase in the development of Nigeria’s insurance industry.

The exercise was conducted pursuant to Section 15 and other relevant provisions of the NIIRA 2025, which was signed into law by President Bola Ahmed Tinubu on July 31, 2025, as part of the administration’s financial sector reform agenda aimed at supporting Nigeria’s aspiration to build a $1 trillion economy by 2030.

According to the Commission, the recapitalisation programme has strengthened the financial capacity of insurance operators, enhanced industry resilience, attracted significant domestic and foreign investments, and boosted investor confidence.

NAICOM explained that following the enactment of the new insurance law, it established a structured implementation framework to ensure transparency, provide regulatory guidance, and support operators in meeting the revised capital thresholds within the statutory compliance period.

As part of the process, the Commission issued comprehensive Guidelines on the Implementation of Minimum Capital Requirements, outlining eligible capital instruments, admissible assets, verification procedures, reporting obligations, regulatory timelines and supervisory expectations.

The Commission said the verification exercise confirmed that 43 insurance and reinsurance firms successfully satisfied the statutory capital requirements, while the remaining eight firms are undergoing final assessment after submitting compliance documents close to the deadline.

NAICOM noted that the recapitalisation exercise marks the beginning of a stronger and more resilient insurance industry with enhanced capacity to underwrite larger and more complex risks across critical sectors of the economy.

It added that the higher capital base would improve insurers’ ability to meet policyholder obligations promptly, absorb emerging risks, finance long-term investments such as infrastructure projects, and compete more effectively in regional and international insurance markets.

The Commission also said the exercise provides a stronger foundation for the implementation of its Risk-Based Capital Framework, enabling regulatory capital requirements to align more closely with the size, complexity and risk profile of individual operators.

Reaffirming its commitment to policyholder protection and market development, NAICOM said it would continue to modernise Nigeria’s insurance ecosystem through innovation, technology and digitalisation while promoting sound market conduct and expanding insurance penetration nationwide.

The regulator assured policyholders, investors and other stakeholders that it would continue to provide regular updates on post-recapitalisation supervisory activities, companies undergoing final verification, industry restructuring and other strategic initiatives aimed at strengthening confidence in Nigeria’s insurance sector.

NAICOM expressed appreciation to the Federal Government, shareholders, investors, operators, professional bodies, development partners and other stakeholders for their support throughout the recapitalisation process.

The Commission described the successful completion of the exercise as the foundation for a more robust, well-governed and globally competitive insurance industry capable of delivering greater value to policyholders and supporting Nigeria’s long-term economic development.