Get Guardian on GoogleNigeria’s insurance industry has been given 12 months to meet stringent new capital thresholds under the Nigeria Insurance Industry Reform Act (NIIRA) 2025, a directive regulators say is critical to strengthening the sector’s capital and aligning it with the nation’s $1 trillion economy ambition.
The Act, signed into law by President Bola Tinubu, mandates a significant increase in minimum capital thresholds for operators across all market segments.
Life insurance companies must raise their capital from N2 billion to N10 billion, non-life insurers from N3 billion to N15 billion, and reinsurance firms from N10 billion to N35 billion, representing a hike of up to 500 per cent.
Existing insurers are required to meet these benchmarks within 12 months of the law’s commencement, effectively setting a compliance deadline of July 2026 unless the National Insurance Commission (NAICOM) grants an extension or concessions.
To drive implementation, NAICOM has inaugurated an 11-member recapitalisation committee, chaired by its Director of Supervision, Oluwatoyin Charles.
The committee will oversee compliance, verify capital inflows, and ensure transparency in the process.
The Commissioner for Insurance, Olusegun Omosehin, underscored the reform’s significance, stating that recapitalisation would stabilise the industry and boost its ability to retain large-tick risks locally.
