The National Insurance Commission has announced that 43 insurance and reinsurance companies have successfully met the new minimum capital requirements introduced under the Nigerian Insurance Industry Reform Act 2025. The development marks a major milestone in the ongoing reform of Nigeria’s insurance industry and is expected to strengthen the sector’s ability to support economic growth.
According to the commission, the recapitalisation exercise lasted 12 months and was carried out under Section 15 of the Nigerian Insurance Industry Reform Act, which was signed into law by President Bola Tinubu on July 31, 2025. The new law raised the minimum capital expected from insurance companies to improve their financial strength and increase public confidence in the industry.
NAICOM explained that after completing a detailed review and verification process, 43 insurance and reinsurance firms met the required standards before the July 31, 2026 deadline. However, the regulator disclosed that eight other companies submitted evidence of compliance shortly before the deadline and are currently undergoing final verification. It said the review would be completed within the next 14 days.
The commission described the exercise as one of the most significant reforms in the country’s financial services sector in recent years. It believes the stronger capital base will enable insurance companies to take on larger and more complex risks while providing better protection for policyholders and businesses.
NAICOM stated that “the recapitalisation exercise was undertaken pursuant to Section 15 and other relevant provisions of the Nigerian Insurance Industry Reform Act 2025.” It also noted that the exercise followed the release of detailed implementation guidelines covering minimum capital requirements, eligible capital instruments, reporting obligations, verification procedures, and regulatory timelines.
The regulator believes the new capital structure will improve the financial stability of insurance operators and support the transition to a risk based supervisory system. This approach will ensure that the amount of capital held by each company reflects the level of risks it undertakes.
Beyond strengthening insurance companies, NAICOM said the reform would improve insurance penetration across the country, encourage financial inclusion, and enhance the overall stability of Nigeria’s financial system. It added that stronger insurers would be better positioned to finance infrastructure projects, absorb larger risks, and contribute to the Federal Government’s ambition of building a one trillion dollar economy.
Before the deadline, the commission had repeatedly insisted that there would be no extension of the recapitalisation programme, warning that companies that failed to comply could face regulatory sanctions, including the possible loss of their operating licences.
With the successful completion of the exercise for most operators, the insurance industry is expected to enter a new phase marked by stronger financial capacity, improved investor confidence, and greater ability to support Nigeria’s long term economic development.
