NAICOM Sets July 2026 Deadline for New Insurance Capital Requirements Under NIIRA 2025
The National Insurance Commission (NAICOM) has given insurance and reinsurance companies in Nigeria a 12-month deadline to comply with the newly approved Minimum Capital Requirements (MCR) under the Nigeria Insurance Industry Reform Act (NIIRA) 2025. According to a circular issued by the regulator, all operators must meet the new capital thresholds and the Risk-Based Capital (RBC) framework on or before July 30, 2026. The recapitalisation exercise officially began on July 31, 2025, following President Bola Tinubu’s assent to the NIIRA 2025.
The revised capital benchmarks set by the law require N10 billion for life insurers, N15 billion for non-life, N25 billion for composite, and N35 billion for reinsurance companies. NAICOM emphasized that only insurers and reinsurers that meet these requirements, pay the necessary fees, and obtain confirmation will be issued new operating licences, while non-compliant operators face liquidation, mergers, or other regulatory actions.
In preparation for the transition, NAICOM announced that it will release detailed guidelines covering the composition of the MCR, acceptable capital instruments, procedures for verification, ownership and title requirements, and computation templates. The regulator warned that encumbered assets, unperfected titles, and assets beyond prudential limits will be inadmissible in meeting the new thresholds. All assets, it added, will undergo strict verification by the Commission or its designated agents.
To support compliance, NAICOM said it will collaborate with other regulatory bodies such as the Securities and Exchange Commission (SEC), the Corporate Affairs Commission (CAC), and the Nigerian Stock Exchange (NSE) to explore concessions and incentives that will ease the recapitalisation process. It also assured stakeholders that the implementation will be transparent, fair, and aimed at strengthening the financial soundness of the industry while boosting public trust.
The Commission has established an in-house committee to coordinate and monitor the exercise, directing all insurance and reinsurance firms to commence internal preparations, outline recapitalisation strategies, and engage proactively to meet the July 2026 deadline. NAICOM reiterated that the recapitalisation drive aligns with its long-term vision of deepening market stability, improving industry confidence, and ensuring that the benefits of NIIRA 2025 reach Nigerian policyholders.
Source: Leadership