The National Insurance Commission (NAICOM) has revoked the operating licence of Nigeria Reinsurance Corporation after the company failed to meet the statutory minimum capital requirement introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, marking the regulator’s first major enforcement action since the industry’s recapitalisation exercise concluded.
In a public notice issued on Wednesday, NAICOM said the reinsurer did not comply with the minimum paid-up capital threshold of ₦35 billion required for reinsurance companies under the new law. The commission said the failure left it with no option but to withdraw the firm’s operating licence in line with its statutory mandate to strengthen the financial stability of the insurance industry.
As part of the enforcement action, NAICOM directed that all bank accounts belonging to Nigeria Reinsurance Corporation be frozen to preserve the company’s assets pending the liquidation process.
The regulator also appointed Dr. Muiz Banire (SAN) as Receiver and Provisional Liquidator, with effect from August 3, 2026, to oversee the orderly winding up of the company’s affairs. His responsibilities include identifying and safeguarding the company’s assets, verifying claims, settling outstanding liabilities where applicable and administering the liquidation process in accordance with relevant laws.
The action represents a significant milestone in NAICOM’s post-recapitalisation oversight strategy. The capital reforms introduced under NIIRA 2025 were designed to strengthen insurers’ financial capacity, improve their ability to absorb large risks and enhance confidence among policyholders, investors and international counterparties.
Industry analysts say stricter enforcement of capital requirements is expected to encourage stronger corporate governance and could accelerate consolidation within Nigeria’s insurance market, particularly among operators that struggled to raise fresh capital during the recapitalisation exercise.
Nigeria Reinsurance Corporation is owned by businessman and politician Senator Jimoh Ibrahim. Efforts to obtain the company’s response were unsuccessful as of press time.
NAICOM sought to reassure policyholders, creditors and other stakeholders that the liquidation would be conducted transparently and in accordance with the law. The commission said it remains committed to protecting policyholders’ interests while promoting a sound, resilient and well-capitalised insurance sector capable of supporting Nigeria’s broader economic development.
The development is expected to reinforce regulatory discipline across the industry, signalling that operators unable to meet prudential standards will face decisive enforcement measures as NAICOM pursues a stronger and more competitive insurance market.
