By Kingsley Benson
Nigeria’s insurance industry is set for a major shake-up as the National Insurance Commission (NAICOM) moves to enforce the newly signed Nigerian Insurance Industry Reform Act (NIIRA) 2025. The law mandates the cancellation of licenses for any insurance or reinsurance firm that fails to meet new capital requirements within one year.
Under the NIIRA, capital thresholds have risen sharply. Life insurers must now hold a minimum of N10 billion, up from N2 billion. Non-life companies face an increase from N3 billion to N15 billion, while reinsurance firms must meet a N35 billion threshold, more than triple the previous N10 billion requirement. The Act also grants NAICOM the discretion to demand even higher capital from firms, based on size, complexity, and risk profile.
The commission has already constituted an 11-member Recapitalisation Committee, chaired by its Director of Supervision, Mr. Oluwatoyin Charles, to oversee the transition. According to the commission, the team will ensure strict compliance with the new rules, promote transparency in capital sourcing, and verify inflows to prevent abuse.
Mr. Olusegun Ayo Omosehin, Commissioner for Insurance, who inaugurated the committee in Abuja, described recapitalisation as a “critical stabilising force” for the industry and a key pillar in achieving Nigeria’s $1 trillion economy target. He urged members to execute their work with professionalism, diligence, and a shared commitment to safeguarding the sector.
The commission noted that the committee’s terms of reference include drafting a detailed recapitalisation roadmap, preparing operational guidelines, recommending the structure of minimum capital requirements, and identifying incentives from other regulators to ease compliance. They will submit monthly progress reports to NAICOM’s management and quarterly updates to the Governing Board and stakeholders.
NAICOM is confident that the reforms will not only strengthen the financial resilience of the sector but also position Nigeria’s insurance industry as a competitive player in the global market. For firms unwilling or unable to meet the new standards, however, the message is clear — their licenses will be withdrawn.
