The National Insurance Commission (NAICOM) has announced that the verified outcome of a recapitalisation exercise in the insurance industry indicates that 43 insurance and reinsurance companies successfully met prescribed Minimum Capital Requirements (MCR) by the statutory deadline of 31 July 2026.
In addition, eight insurance companies that submitted evidence of compliance shortly before the deadline are currently undergoing final verification and regulatory review. This would be concluded within 14 days, NAICOM said in a statement.
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Number of insurers that meet new capital requirements
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Type
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Number of companies
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Number of companies that meet MCR
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Non-life insurers
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23
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23
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Life insurers
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11
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10
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Composite insurers
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8
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8
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Reinsurers
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2
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2
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Total
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44
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43
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Source: NAICOM
Figures exclude takaful companies and microinsurers
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The outcome indicates that all (re)insurers met the new minimum capital thresholds, except for one life insurer.
The recapitalisation exercise, involving a comprehensive process of review, verification, and validation, was undertaken under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law on 31 July 2025.
NAICOM said, “The successful 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 that is better positioned to support national economic growth, deepen financial inclusion, mobilise long-term investment capital, and contribute meaningfully to the stability of Nigeria’s financial system.”
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 within 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.
To ensure an orderly, transparent, credible, and verifiable recapitalisation process, the Commission issued the “Guidelines on the Implementation of Minimum Capital Requirements (MCR) for Insurance and Reinsurance Companies in Nigeria”. The Guidelines provided detailed guidance 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.
Nigeria had more than 65 licensed insurance and reinsurance companies before the recapitalisation exercise. This number includes five takaful companies and 17 microinsurers. Under the new rules, the insurance entities are required to maintain minimum capital levels based on their branch of business, with minimum capital requirements set at NGN10bn ($7.3m) for life insurers, NGN15bn for non-life insurers, NGN25bn for composite insurers and NGN35bn for reinsurers.
Click on this link for the list of 43 (re)insurers that have been verified as having satisfied minimum capital requirements.