Insurance companies in Nigeria have been given 12 months to July 2026 to comply with new minimum capital requirements set out under the new Insurance Sector Reform Act signed in early August by President Bola Ahmed Tinubu.
The decision was announced by the National Insurance Commission (NAICOM), which has set up an 11-member committee to ensure compliance and transparency.
The new required minimum capital is as follows:
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For non-life insurers - to NGN15bn from NGN3bn
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For life insurers - to NGN10bn from NGN2bn
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For reinsurers - to NGN35bn from NGN10bn
The director-general of the Nigerian Insurers Association (NIA), Mrs Bola Odukale, speaking at an annual retreat of NIA’s Risk, Audit, Compliance Committee, said the Nigerian insurance industry was witnessing a transformation that challenges it to rethink how it operates and how it delivers value, reported the online media outlet inspenonline.com.
She said, “At the heart of this transformation is recapitalisation, an essential step toward achieving financial solidity, institutional resilience, and global competitiveness."
She added, “The strength of our governance structures will ultimately determine how well we deploy capital, manage risks, and meet our obligations to policyholders and stakeholders alike.”