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Nigeria’s insurance sector has reached a major regulatory milestone as the National Insurance Commission (NAICOM) announced that 43 insurance and reinsurance companies have successfully satisfied the new minimum capital requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The insurance regulator disclosed that eight additional companies which submitted evidence of compliance close to the statutory deadline are currently undergoing final verification, with the review expected to be concluded within 14 days.
Recapitalisation Exercise Reaches Completion
NAICOM described the completion of the 12-month recapitalisation programme as a significant milestone in the transformation of Nigeria’s insurance industry.
The exercise was conducted in line with Section 15 and other relevant provisions of NIIRA 2025, the legislation signed into law by President Bola Tinubu on July 31, 2025, as part of the Federal Government’s broader financial sector reform agenda aimed at supporting the country’s ambition of building a $1 trillion economy by 2030.
According to the Commission, the implementation process involved issuing detailed guidelines on the new capital thresholds, conducting extensive reviews of operators and carrying out comprehensive verification and validation of compliance submissions.
Breakdown of Compliant Companies
The regulator said the 43 compliant operators comprise:
- 23 Non-life insurance companies
- 10 Life insurance companies
- 8 Composite insurance companies
- 2 Reinsurance companies
Among the approved firms are major industry players including Leadway Assurance, AIICO Insurance, AXA Mansard Insurance, Cornerstone Insurance, LASACO Assurance, NEM Insurance, Custodian and Allied Insurance, Heirs General Insurance, Heirs Life Assurance, Stanbic IBTC Insurance, Continental Reinsurance Plc, and FBS Reinsurance Limited, among others.
Stronger Capital Base to Boost Industry Resilience
NAICOM said the recapitalisation exercise has significantly strengthened the financial capacity of insurance operators while attracting fresh domestic and foreign investments into the industry.
The Commission noted that the stronger capital base will enable insurers to:
- Settle policyholders’ claims more promptly.
- Underwrite larger and more sophisticated risks.
- Absorb emerging financial and operational risks.
- Finance infrastructure and other long-term investments.
- Compete more effectively in regional and international insurance markets.
The regulator also stated that the exercise lays a stronger foundation for implementing risk-based supervision, ensuring that insurers maintain capital levels appropriate to the size and complexity of their businesses.
Eight Companies Await Regulatory Verification
While the majority of operators successfully met the requirements, NAICOM said eight insurers that submitted compliance documentation shortly before the deadline are still undergoing regulatory assessment.
The Commission expects the verification process to be completed within two weeks, after which the status of the affected companies will be determined.
Beginning of a New Phase
Describing the exercise as more than a regulatory requirement, NAICOM said the recapitalisation marks the beginning of a new era for Nigeria’s insurance industry.
According to the Commission, stronger and better-capitalised insurers will be better positioned to deepen financial inclusion, mobilise long-term investment capital and contribute more effectively to national economic development.
The regulator also reaffirmed its commitment to strengthening consumer protection, improving market conduct and accelerating insurance penetration through innovation, technology and digital transformation as implementation of NIIRA 2025 continues.
Industry Eyes Post-Recapitalisation Growth
With the recapitalisation phase largely completed, attention is expected to shift towards post-recapitalisation supervision, industry consolidation and the implementation of the Risk-Based Capital Framework.
Market analysts believe the stronger capital structure will improve investor confidence, enhance the industry’s ability to support large-scale economic projects and position Nigeria’s insurance sector for more sustainable long-term growth.
As NAICOM concludes one of the most significant reforms in the industry’s history, stakeholders will now be watching how the newly strengthened insurers leverage their enhanced capital positions to expand coverage, improve service delivery and drive greater insurance adoption across the country.
