The National Insurance Commission (NAICOM) has directed all insurance companies (insurers) to submit their recapitalisation plans on or before September 30, 2025.
The directive is contained in guidelines on the minimum capital requirement (MCR), according to a circular on Monday, September 8, by the Director of the Supervision Directorate, Oluwatoyin Charles.
It said the framework is designed to strengthen the industry, enhance financial soundness, and ensure seamless implementation of the new capital thresholds.
It said the submission must include a board resolution on compliance, capital status as of the 2024 audited financial statements and June 2025 second-quarter returns.
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It should also include a statement on statutory deposits with the Central Bank of Nigeria (CBN) and a detailed action plan on sources and timelines for fresh capital injection.
“Insurers intending to seek funds from the capital markets are required to submit their plan of action on a file-and-use basis.
“Insurers that intend to merge or acquire another shall submit their proposal, after which they must comply with the relevant provisions of these guidelines and extant insurance laws.
“Portfolio Transfer and Run-Off Plan where a composite company that chose to discontinue a particular category of insurance business,” NAICOM stated.
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Pinnacle Daily reports that the new directive follows the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, aiming to ensure effective and seamless implementation of the new capital thresholds.
NAICOM has set a minimum capital base for non-life insurers at N15 billion, life insurance firms at least N10 billion, and reinsurance companies at N35 billion, fixing July 30, 2026, as the deadline for all insurance companies to recapitalise.
The apex regulator had also directed all insurance firms to file monthly recapitalisation progress reports not later than 10 working days after each month-end.
“The progress report shall include the MCR status of the insurer computed in line with the Template for MCR, achieved milestones and efforts made to meet the recapitalisation plan.
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“Where an insurer has met the required MCR, it shall continue to submit the recomputed MCR status at the end of each month until the issuance of a licence or such other time as the Commission may determine.
“All assets’ disposals, including the sales proceeds and their applications during and after the recapitalisation exercise, shall be clearly disclosed and reported in the monthly and quarterly reports,” it stated in the circular.
NAICOM noted in its guidelines that capital verification exercises will begin on November 1 and be concluded by June 30, 2026.
It further directed the insurance firms to provide evidence of ownership, title and valuation of admissible assets, supported by actuarial reports, and to submit evidence of statutory deposit with CBN on or before May 30, 2026.
Pinnacle Daily reported that President Bola Tinubu, on Tuesday, August 5, signed the NIIRA 2025 into law.
The Act repeals and consolidates several outdated insurance laws into a single one and is aimed at strengthening the financial sector as Nigeria pushes toward achieving a $1 trillion economy by 2030.
In a related development, on September 4, the Securities and Exchange Commission (SEC) announced its creation of a dedicated desk to fast-track approvals for the insurance sector recapitalisation.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
