The National Insurance Commission (NAICOM) has announced the successful completion of the 12-month insurance sector recapitalisation exercise undertaken in line with the provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
In a statement released on Sunday, NAICOM said the successful completion of the recapitalisation exercise marks “a defining milestone in the transformation of Nigeria’s insurance industry.”
NIIRA 2025 was signed into law on 31 July 2025 by President Bola Ahmed Tinubu, as part of his administration’s financial sector transformation agenda towards the attainment of a $1 trillion economy by 2030.
NAICOM confirmed that 43 insurance and reinsurance companies successfully met the prescribed Minimum Capital Requirements (MCR). However, it stated that eight firms which submitted evidence of compliance shortly before the statutory deadline are currently undergoing final verification and regulatory review, which would be concluded within 14 days.
NAICOM listed four primary categories of insurance compliance, which include: non-life insurers, life, composite, and reinsurance.
According to the list, the confirmed non-life insurers include Zenith General Insurance Company Limited, Custodian and Allied Insurance Limited, NEM Insurance Plc, Heirs General Insurance Limited, Fin Insurance Company Limited, Mutual Benefits Assurance Plc, Tangerine General Insurance Ltd, Capital Express Indemnity Insurance Limited, Sanlam-Allianz General Insurance Nigeria Ltd, and Consolidated Hallmark Insurance Limited.
Other confirmed non-life insurers are Sterling Assurance Nigeria Limited, Unitrust Insurance Co. Limited, NSIA Insurance Limited, Rex Insurance Limited, Linkage Assurance Plc, Anchor Insurance Company Ltd, Sunu Assurances Nigeria Plc, KBL Insurance Ltd, International Energy Insurance Plc, Veritas Kapital Assurance Plc, NPF Insurance Company Ltd, Coronation Insurance Plc, Prestige Assurance Plc.
The life insurers category includes Custodian Life Assurance Limited, CHI Life Assurance Limited, Heirs Life Assurance Limited, Prudential Zenith Life Insurance Ltd, Stanbic IBTC Insurance Limited, Sanlam-Allianz Life Insurance Nigeria Limited, Capital Express Life Assurance Limited, Mutual Benefits Life Assurance Ltd, Enterprise Life Assurance Company (Nigeria) Ltd, and Coronation Life Assurance Limited.
Those under the composite category are companies that operate in both Life and Non-Life sectors. These include Leadway Assurance Company Limited, AIICO Insurance Plc, Cornerstone Insurance Plc, LASACO Assurance Plc, Fortis Global Insurance Plc, Industrial and General Insurance Plc, Great Nigeria Insurance Plc and AXA Mansard Insurance Plc.
Companies under the reinsurance category are Continental Reinsurance Plc and FBS Reinsurance Limited.
A New Era for Nigeria’s Insurance Industry
NAICOM said the successful conclusion of the exercise signals what it described as “the beginning of a new era for insurance in the country,” and represents a major step toward building a stronger, more resilient, adequately capitalized, professionally governed, and policyholder-focused insurance sector.
According to the Commission, the verified outcome has delivered a major boost to the Nigerian insurance industry, enhancing the financial resilience of operators, attracting substantial domestic and foreign investment, and rekindling strong investor confidence.
Following the enactment of NIIRA 2025, the Commission commenced a structured implementation process to provide strategic oversight, ensure transparency, support operators throughout the transition, and facilitate the effective implementation of the new minimum capital requirements within the statutory compliance period.
To ensure an orderly, transparent, credible, and verifiable process, the Commission issued the Guidelines on the Implementation of Minimum Capital Requirements (MCR) for Insurance and Reinsurance Companies in Nigeria. The Guidelines provided detailed guidance on the statutory minimum capital requirements under NIIRA 2025 for eligible and ineligible capital instruments, admissible and non-admissible assets, verification and validation procedures, regulatory timelines, reporting obligations, and supervisory expectations throughout the implementation period.
Stronger Capital, Greater Capacity
The Commission maintained that with completion of the recapitalisation exercise, Nigeria’s insurance industry is now entering a new phase of development founded on stronger capital, improved financial resilience, and enhanced capacity to underwrite larger and more sophisticated risks across strategic sectors of the economy.
It said the increase in minimum capital will improve insurers’ ability to honour policyholder obligations promptly, absorb emerging risks, support infrastructure and other long-term investments, and compete more effectively within regional and global insurance markets.
The recapitalization exercise, it added, also provides a stronger foundation for enhanced risk-based supervision by the Commission, ensuring that regulatory capital remains appropriately aligned with the nature, scale, complexity, and risk profile of each licensed operator.
Commitment to Policyholder Protection and Market Development
The Commission reassured policyholders, investors, insurance operators, development partners, and the general public that, as the implementation of NIIRA 2025 continues alongside the modernization of Nigeria’s insurance ecosystem through innovation, technology, and digitization, the Commission will continue to strengthen consumer protection, promote sound market conduct, and accelerate insurance penetration across the country.
“Our unwavering commitment remains to build a fair, stable, innovative, inclusive, and globally competitive insurance market that inspires public confidence and delivers lasting value to policyholders and the Nigerian economy,” the Commission stated.
The Commission assured that it will continue to engage stakeholders and provide regular updates on post-recapitalisation supervisory actions, companies undergoing final verification, industry restructuring developments, implementation of the Risk-Based Capital Framework, and other strategic initiatives designed to deepen insurance penetration and strengthen confidence in the Nigerian insurance industry.
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A Foundation, not a Destination
The National Insurance Commission expressed its profound appreciation to the Federal Government, regulatory and supervisory partners, shareholders, investors, operators, professional bodies, development partners, and all stakeholders whose cooperation and commitment contributed to the successful completion of this historic exercise.
“The successful completion of this recapitalization exercise is not the destination but the foundation,” the Commission emphasized.
“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.”
Looking Ahead
With 43 companies already verified as compliant and 8 more undergoing final review, the Commission is optimistic that the Nigerian insurance sector is now better positioned to support national economic growth, deepen financial inclusion, mobilize long-term investment capital, and contribute meaningfully to the stability of Nigeria’s financial system.
As the Commission continues to engage stakeholders and provide regular updates, the industry awaits the outcome of the final verification of the eight companies still under review, expected within the next fourteen days.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X