The National Insurance Commission (NAICOM) has announced the successful completion of the twelve-month insurance sector recapitalisation exercise involving 43 insurance and reinsurance companies.
The completion of the exercise was disclosed on Monday in a statement by NAICOM, which said it was conducted pursuant to Section 15 and other relevant provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law on 31 July 2025 by President Bola Ahmed Tinubu.
|
|
NAICOM said 43 insurance and reinsurance companies successfully met the new capital requirements before the deadline, while eight insurance companies that submitted evidence of compliance shortly before the statutory deadline are currently undergoing final verification.
The commission added that the recapitalisation process for the eight pending insurance companies would be concluded within 14 days.
|
|
|
|---|
NAICOM said the exercise forms part of the Tinubu administration’s financial sector transformation agenda aimed at achieving a $1 trillion economy by 2030.
According to the commission, the conclusion of the exercise marks a defining milestone in the transformation of Nigeria’s insurance industry and signals the beginning of a new era for insurance in the country.
“It represents a major step towards building a stronger, more resilient, adequately capitalised, professionally governed, and policyholder-focused insurance sector,” it stated.
Stay Ahead with Premium Times
Follow us on Google News and never miss breaking stories, investigations, and in-depth reporting.
Add as a preferred source on Google
The commission added that the exercise positions Nigeria’s insurance sector to support national economic growth, deepen financial inclusion, mobilise long-term investment capital, and contribute meaningfully to the stability of the country’s financial system.
Background
Following the enactment of NIIRA 2025, the commission commenced a structured implementation process to provide strategic oversight, ensure transparency, and support operators throughout the transition.
The process was also aimed at facilitating the effective implementation of the new minimum capital requirements within the statutory compliance period.
To ensure an orderly, transparent, credible, and verifiable process, the commission issued guidelines on the implementation of the Minimum Capital Requirements (MCR) for insurance and reinsurance companies in Nigeria.
The guidelines provided detailed direction on the statutory minimum capital requirements under NIIRA 2025, eligible and ineligible capital instruments, admissible and non-admissible assets, verification and validation procedures, regulatory timelines, reporting obligations, and supervisory expectations throughout the implementation period.
Through a comprehensive process of review, verification, and validation, the recapitalisation exercise has delivered a major boost to the Nigerian insurance industry, the commission said.
According to NAICOM, the exercise has enhanced the financial resilience of operators, attracted substantial domestic and foreign investment, and rekindled strong investor confidence.
Resilient industry
Nigeria’s insurance industry is now entering a new phase of development, founded on stronger capital, improved financial resilience, and enhanced capacity to underwrite larger and more sophisticated risks across strategic sectors of the economy.
The increase in minimum capital will improve insurers’ ability to honour policyholder obligations promptly, absorb emerging risks, support infrastructure and other long-term investments, and compete more effectively in regional and global insurance markets.
The recapitalisation exercise also provides a stronger foundation for enhanced risk-based supervision by the commission, ensuring that regulatory capital remains appropriately aligned with the nature, scale, complexity, and risk profile of each licensed operator.
Market development
The commission reassured policyholders, investors, insurance operators, development partners, and the general public that, as the implementation of NIIRA 2025 continues alongside the modernisation of Nigeria’s insurance ecosystem through innovation, technology, and digitalisation, it will continue to strengthen consumer protection, promote sound market conduct, and accelerate insurance penetration across the country.
“Our unwavering commitment remains to build a fair, stable, innovative, inclusive, and globally competitive insurance market that inspires public confidence and delivers lasting value to policyholders and the Nigerian economy,” NAICOM stated.
The commission said it will continue to engage with stakeholders and provide regular updates on post-recapitalisation supervisory actions, companies undergoing final verification, developments in industry restructuring, implementation of the Risk-Based Capital Framework, and other strategic initiatives designed to deepen insurance penetration and strengthen confidence in the Nigerian insurance industry.
“The successful completion of this recapitalisation exercise is not the destination but the foundation. It marks the beginning of a new era in which stronger institutions, stronger governance, and stronger public confidence will make insurance work better for every Nigerian,” the commission added.
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
More News
