Abuja, Nigeria | September 10, 2025
The National Insurance Commission (NAICOM) has announced the enforcement of new minimum capital requirements for insurance and reinsurance companies, following the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law in August by President Bola Tinubu.
Under the revised framework, insurance operators have 12 months to meet the new thresholds:
Life Insurance Companies: ₦10 billion
Non-Life Insurance Companies: ₦15 billion
Composite Insurance Companies: ₦25 billion
Reinsurance Companies: ₦35 billion
The reforms represent a significant increase from the previous levels of ₦2 billion, ₦3 billion, ₦5 billion, and ₦10 billion respectively. NAICOM clarified that operators must comply with whichever is higher between these fixed thresholds or a risk-based capital (RBC) calculation.
The directive is part of a sweeping overhaul of the insurance sector aimed at boosting financial resilience, encouraging industry consolidation, and enhancing consumer protection. Other measures under the Act include the creation of a Policyholder Protection Fund, digitization of regulatory processes, stricter enforcement of compulsory insurance, and penalties for delayed claim settlements.
Insurance firms have until July/August 2026 to comply, failing which NAICOM may impose sanctions including mergers, license revocation, or liquidation. The Securities and Exchange Commission (SEC) has also established a dedicated help-desk to assist companies in raising fresh capital within the compliance window.
Industry stakeholders say the move will reposition Nigeria’s insurance market to meet international best practices and restore public confidence.
