The National Insurance Commission (NAICOM) has announced the successful completion of the insurance sector recapitalisation exercise, with 43 insurance and reinsurance companies meeting the new minimum capital requirements, while eight others are undergoing final regulatory verification.
The 12-month recapitalisation exercise was conducted under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law by President Bola Ahmed Tinubu on July 31, 2025.
In a statement issued on Monday, NAICOM described the exercise as a landmark achievement that will strengthen the financial capacity of insurance companies, improve policyholder protection and position the industry for sustainable growth.
43 Firms Meet New Capital Requirements
According to the Commission, the recapitalisation exercise followed the implementation of NIIRA 2025, which introduced new minimum capital requirements and strengthened regulatory standards for insurance operators.
The framework also outlined eligible capital instruments, admissible assets, verification procedures, reporting obligations and supervisory expectations.
NAICOM said rigorous verification and validation processes confirmed that 43 insurance and reinsurance companies successfully met the prescribed capital requirements.
However, eight companies that submitted evidence of compliance close to the deadline are currently undergoing final regulatory review, which is expected to be completed within 14 days.
Stronger Insurance Industry
The Commission said the higher capital base would enable insurers to underwrite larger and more complex risks across critical sectors of the economy.
It added that stronger capitalisation would improve claims settlement, enhance the industry’s ability to absorb emerging risks and support long-term investments, including infrastructure financing.
According to NAICOM, the recapitalisation exercise also strengthens its risk-based supervisory framework by ensuring that regulatory capital aligns with the size, complexity and risk profile of each licensed operator.
NAICOM Commits to Further Reforms
The Commission reaffirmed its commitment to implementing reforms introduced under NIIRA 2025, including modernising the insurance sector through innovation, technology and digital transformation.
It also pledged to strengthen consumer protection, promote sound market conduct, increase insurance penetration and build a globally competitive insurance industry.
NAICOM said it would continue providing updates on post-recapitalisation supervision, the verification of the remaining eight companies, industry restructuring and the implementation of the Risk-Based Capital Framework.
The Commission expressed appreciation to the Federal Government, shareholders, investors, insurance operators, professional bodies and development partners for supporting the recapitalisation process.
It described the successful completion of the exercise as the foundation for a stronger, more resilient and policyholder-focused insurance industry in Nigeria.
