By Abiodun Folarin
WorldStage— The National Insurance Commission (NAICOM) has announced the successful completion of the 12-month insurance sector recapitalisation exercise, describing it as a landmark reform that ushers in a new era of stronger, more resilient and better-capitalised insurance companies capable of supporting Nigeria’s economic transformation.
The Commission disclosed that 43 insurance and reinsurance companies have successfully met the new Minimum Capital Requirements (MCR) prescribed under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, while eight other insurance companies that submitted evidence of compliance shortly before the statutory deadline are undergoing final verification, with the process expected to be concluded within 14 days.
In a statement issued on Saturday, NAICOM said the recapitalisation exercise was undertaken pursuant to Section 15 and other relevant provisions of NIIRA 2025, which was signed into law by President Bola Ahmed Tinubu on July 31, 2025, as part of the Federal Government’s financial sector reform agenda aimed at building a $1 trillion economy by 2030.
According to the Commission, the completion of the exercise represents a defining milestone in the transformation of Nigeria’s insurance industry and lays the foundation for a stronger, professionally governed and policyholder-focused market.
NAICOM said the recapitalisation would significantly strengthen the financial resilience of insurance operators, improve their capacity to underwrite larger and more sophisticated risks, honour policyholder obligations promptly, support infrastructure financing and other long-term investments, while enhancing the industry’s competitiveness in regional and global markets.
“The successful completion of this recapitalisation exercise is not the destination but the foundation. It marks the beginning of a new era in which stronger institutions, stronger governance and stronger public confidence will make insurance work better for every Nigerian,” the Commission stated.
Providing background to the exercise, NAICOM explained that following the enactment of NIIRA 2025, it developed comprehensive implementation guidelines covering the new minimum capital requirements, eligible capital instruments, admissible assets, verification procedures, regulatory timelines and supervisory expectations to ensure an orderly, transparent and credible process.
The Commission noted that the exercise has already attracted substantial domestic and foreign investment into the sector while boosting investor confidence.
It added that the higher capital base would also strengthen its implementation of a Risk-Based Capital Framework, allowing regulatory capital requirements to better reflect the nature, scale and complexity of risks undertaken by each licensed operator.
As part of the announcement, NAICOM published the list of 43 insurance and reinsurance companies confirmed as compliant with the new capital requirements. The list includes Zenith General Insurance Company Limited, Leadway Assurance Company Limited, AIICO Insurance Plc, AXA Mansard Insurance Plc, Cornerstone Insurance Plc, LASACO Assurance Plc, Industrial and General Insurance Plc, Great Nigeria Insurance Plc, Continental Reinsurance Plc and FBS Reinsurance Limited, among others.
The Commission reassured policyholders, investors and other stakeholders that implementation of NIIRA 2025 would continue alongside broader reforms focused on innovation, technology and digitisation to modernise Nigeria’s insurance ecosystem.
NAICOM said it remains committed to strengthening consumer protection, promoting sound market conduct, deepening insurance penetration and building a fair, stable, innovative and globally competitive insurance market.
It added that stakeholders would continue to receive updates on post-recapitalisation supervisory actions, companies undergoing final verification, industry restructuring initiatives and the phased implementation of the Risk-Based Capital Framework.
The Commission also expressed appreciation to the Federal Government, shareholders, investors, operators, development partners, professional bodies and other stakeholders for their support, describing the successful completion of the recapitalisation exercise as a historic achievement for Nigeria’s insurance industry.
