NAICOM completes recapitalisation exercise for 43 insurance companies

Nigeria's insurance sector has reached a significant milestone with the National Insurance Commission (NAICOM) announcing the successful completion of its 12-month recapitalization exercise. Forty-three insurance and reinsurance companies have met the new capital requirements, demonstrating a strengthened financial footing for the industry.

The exercise, mandated by the Nigerian Insurance Industry Reform Act (NIIRA) 2025, is a cornerstone of President Bola Ahmed Tinubu's administration's financial sector transformation agenda, which aims to achieve a $1 trillion economy by 2030. NAICOM stated that the conclusion of this process marks the beginning of a new era for insurance in Nigeria, fostering a more resilient, adequately capitalized, and policyholder-focused sector.

While 43 companies met the deadline, eight others submitted compliance evidence shortly before the statutory deadline and are currently undergoing final verification, with their recapitalization expected to be concluded within the next 14 days. NAICOM emphasized that the recapitalisation positions Nigeria's insurance sector to play a more meaningful role in national economic growth, deepen financial inclusion, mobilize long-term investment capital, and enhance the stability of the country's financial system.

The process involved detailed guidelines on minimum capital requirements, eligible capital instruments, and supervisory expectations, ensuring transparency and credibility. NAICOM highlighted that the exercise has not only boosted the industry's financial resilience but also attracted substantial domestic and foreign investment, rekindling strong investor confidence.

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It represents a major step towards building a stronger, more resilient, adequately capitalised, professionally governed, and policyholder-focused insurance sector.