MCR: NAICOM Sets Deadline for Issuance of Insurance Licence
The National Insurance Commission (NAICOM) has set July 2026 as the deadline for issuance of licences to insurance and reinsurance companies that comply with the new Minimum Capital Requirement (MCR).
Mr Olusegun Omosehin, the Commissioner for Insurance, said this in a notice on Thursday Abuja. Omosehin said the date was also the final MCR compliance deadline for companies.
He said the commission would commence Risk Based Capital implementation for companies that have fulfilled the MCR, with adequate transition timelines given for compliance at the expiration of the deadline.
Omosehin said the timelines were to ensure effective implementation of the Nigerian Insurance Industry Reform Act (NIIRA, 2025).
”Under NIIRA 2025 and the guidelines issued by NAICOM, we have set clear expectations by specifying the MCR of N10 billion for life insurers, N15 billion for non-life insurers, and N35 billion for reinsurers.
”These timelines are firm. They reflect our commitment to a transparent, orderly, and risk-based transition to a stronger capital regime,” he said.
Outlining the benefits of the recapitalisation exercise, he said it would strengthen solvency and underwriting capacity thereby enabling insurers to write bigger tickets and retain more risk locally.
Omosehin added that it would help to build public and investors’ confidence hence, attracting capital and partnerships. According to him, it will encourage mergers and acquisitions thereby fostering scale and operational efficiency.
”Recapitalisation will position Nigerian insurers for regional competitiveness, especially under the African Continental Free Trade Area.
”With stronger balance sheets, Nigerian insurers can seize cross-border opportunities, develop regional products, and participate in large infrastructure and trade-related risks.
”Recapitalisation is the passport to that future,” he said. NIIRA 2025 was signed into law on Aug. 5, by President Bola Tinubu.
The legislation was a landmark effort to modernise the insurance sector by consolidating previous laws and introducing reforms like higher capital requirements and mandatory claim settlement timelines.
