NAICOM Warns Insurers of Liquidation Over Recapitalization Deadline
The National Insurance Commission (NAICOM) has warned insurance companies in Nigeria that failure to meet the July 2026 recapitalization deadline will result in strict regulatory actions, including liquidation or merger.
This directive follows the recent passage of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which introduced new Minimum Capital Requirements (MCR) for insurance and reinsurance companies.
According to NAICOM, life insurance companies are required to raise their minimum capital to N10 billion, non-life insurance companies to N15 billion, and reinsurance firms to N35 billion.
The commission emphasized that assets that are encumbered, lack perfected title or ownership, or are not in the full possession of an insurer will not be considered admissible for meeting the MCR.
NAICOM will issue comprehensive guidelines detailing the modalities for the recapitalization exercise, including acceptable forms of capital, procedures for capital verification, and the composition and admissibility of assets.
The commission assured that the implementation process will be transparent, fair, and value-adding. The recapitalization drive is expected to lead to industry consolidation, with weaker players potentially being forced out or merged with stronger companies.
This move aims to create a more robust and competitive insurance market capable of underwriting larger risks and driving penetration beyond urban areas. Policyholders are likely to benefit from better service delivery and faster claims settlement as a result of the strengthened capital base of insurance companies.
NAICOM’s warning is a clear indication that it is determined to ensure compliance with the new regulations and strengthen the insurance industry in Nigeria. Insurers and reinsurers that fail to meet the recapitalization deadline may face severe consequences, including liquidation or merger. #NAICOM Warns Insurers of Liquidation Over Recapitalization Deadline#
