The National Insurance Commission (NAICOM) has announced the successful completion of the 12-month insurance sector recapitalisation exercise introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The Commission said the exercise marks a major milestone in repositioning Nigeria’s insurance industry to better support economic growth, deepen financial inclusion and strengthen the country’s financial system.

‎In a statement issued in Abuja, NAICOM said the recapitalisation programme was implemented 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 exercise was carried out through a structured implementation process designed to ensure transparency, regulatory compliance and effective supervision. It said operators were guided by the Minimum Capital Requirements (MCR) Guidelines, which outlined eligible capital instruments, admissible assets, verification procedures, reporting obligations and supervisory expectations throughout the compliance period.

‎NAICOM disclosed that 43 insurance and reinsurance companies successfully met the prescribed minimum capital requirements after an extensive review, verification and validation process. It added that eight insurance companies that submitted evidence of compliance shortly before the statutory deadline are undergoing final verification and regulatory review, which is expected to be concluded within 14 days.

‎The Commission said the recapitalisation exercise has strengthened the financial resilience of insurance operators, attracted significant domestic and foreign investment, and renewed investor confidence in the sector. It noted that the reforms have positioned the industry to underwrite larger and more complex risks across strategic sectors of the economy.

NAICOM further stated that the increased capital base will enhance insurers’ capacity to meet policyholders’ obligations promptly, absorb emerging risks, finance long-term investments such as infrastructure, and compete more effectively in regional and global insurance markets. It added that the exercise also provides a stronger foundation for the implementation of risk-based supervision, ensuring regulatory capital aligns with the size and risk profile of licensed operators.

The Commission also reaffirmed its commitment to protecting policyholders, promoting sound market conduct and accelerating insurance penetration through continued reforms, innovation, technology and digitalisation. It assured policyholders, investors and other stakeholders that it would continue to provide updates on post-recapitalisation supervisory actions, companies undergoing final verification, industry restructuring and the implementation of the Risk-Based Capital Framework.

NAICOM expressed appreciation to the Federal Government, regulatory agencies, shareholders, investors, insurance operators, professional bodies and development partners for their support throughout the recapitalisation process. The Commission described the completion of the exercise as the beginning of a new phase for Nigeria’s insurance industry, driven by stronger institutions, improved governance and greater public confidence.