National Insurance Commission (NAICOM) has issued new guidelines on the minimum capital requirement (MCR) for insurance and reinsurance firms in Nigeria, giving them until July 30, 2026, to comply.
Gatekeepers News reports that the directive follows Nigerian Insurance Industry Reform Act (NIIRA) 2025, which introduced new capital thresholds for operators.
Under the law, non-life insurers must now have at least ₦15 billion in capital, while life insurance companies are required to hold a minimum of ₦10 billion. Reinsurance firms face the steepest target, with a capital base of ₦35 billion.
In a circular signed by Oluwatoyin Charles, director of the supervision directorate, NAICOM said the framework was designed to strengthen the industry, enhance financial soundness, and ensure seamless implementation of the new capital thresholds.
NAICOM directed all insurers to submit their recapitalisation plans by September 30, 2025. The plans must include a board resolution on compliance, capital status based on 2024 audited accounts and June 2025 second-quarter returns, evidence of statutory deposits with the Central Bank of Nigeria (CBN), and a detailed action plan on how fresh capital will be raised.
The circular added, “Insurers intending to seek funds from the Capital Markets are required to submit their plan of action on a file-and-use basis. Insurer that intends to merge or acquire another shall submit their proposal after which they must comply with the relevant provisions of these Guidelines and extant insurance laws.”
It also noted provisions for Portfolio Transfer and Run-Off Plan where a composite company chooses to discontinue a particular category of insurance business.
From October, companies must file monthly progress reports on recapitalisation within 10 working days after each month. These reports should show their MCR status, milestones achieved, and steps taken to meet the plan.
NAICOM noted that an insurer has met the required MCR, it shall continue to submit the recomputed MCR status at the end of each month until the issuance of a licence, or such other time as the Commission may determine.
It noted that the assets’ disposals, including the sales proceeds and their applications during and after the recapitalisation exercise, shall be clearly disclosed and reported in the monthly and quarterly reports.
Capital verification will begin on November 1, 2025, and end by June 30, 2026. Insurers must provide evidence of ownership, title, and valuation of admissible assets, supported by actuarial reports. Proof of statutory deposits with the CBN is also due by May 30, 2026.
