By Seun Ibiyemi
The National Insurance Commission (NAICOM) has announced July 2026 as the final deadline for insurance and reinsurance companies to obtain licenses by meeting the new Minimum Capital Requirement (MCR), the Commission said on Thursday.
The Commissioner for Insurance, Mr. Olusegun Omosehin said the deadline also marks the cut-off for companies to comply with the MCR, after which NAICOM will begin implementing Risk-Based Capital (RBC) frameworks for compliant firms, with sufficient transition timelines provided.
“Under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, we have set clear expectations: N10 billion for life insurers, N15 billion for non-life insurers, and N35 billion for reinsurers,” Omosehin said.
“These timelines are firm and reflect our commitment to a transparent, orderly, and risk-based transition to a stronger capital regime.”
Omosehin highlighted that the recapitalisation exercise would strengthen solvency, enhance underwriting capacity, and allow insurers to write larger policies while retaining more risk locally.
He said it would also boost public and investor confidence, attract capital and partnerships, and promote mergers and acquisitions to improve operational efficiency.
“Recapitalisation positions Nigerian insurers for regional competitiveness under the African Continental Free Trade Area. Stronger balance sheets will enable companies to seize cross-border opportunities, develop regional products, and participate in large infrastructure and trade-related risks. Recapitalisation is the passport to that future,” he added.
NIIRA 2025, signed into law by President Bola Tinubu on 5 August, modernises the insurance sector by consolidating previous laws and introducing reforms, including higher capital requirements and mandatory claim settlement timelines.