By Danjuma Amodu
Nigeria’s insurance industry has concluded a year-long recapitalisation exercise with 43 insurance and reinsurance companies meeting the new minimum capital requirements, paving the way for over N300 billion in fresh capital to strengthen the sector.
The National Insurance Commission announced the outcome at the weekend, describing it as a defining milestone under the Nigerian Insurance Industry Reform Act, NIIRA 2025, signed into law on July 31, 2025 by President Bola Ahmed Tinubu.
According to NAICOM, the compliant firms include 23 non-life insurers, 10 life insurers, eight composite insurers and two reinsurance companies. Another eight companies submitted evidence of compliance just before the deadline and are undergoing final verification, which the commission said would be concluded within 14 days.
Commissioner for Insurance, Olusegun Ayo Omosehin, said the exercise was undertaken pursuant to Section 15 of NIIRA 2025 as part of the administration’s financial sector transformation agenda toward a $1 trillion economy by 2030.
“The successful conclusion of the exercise marks a defining milestone in the transformation of Nigeria’s insurance industry and signals the beginning of a new era for insurance in the country”
Omosehin noted that the recapitalisation will build a stronger, more resilient and policyholder-focused sector capable of underwriting larger risks, mobilising long-term investment and deepening financial inclusion.
THE NEW CAPITAL LANDSCAPE
Among composite insurers confirmed compliant are Leadway Assurance, AIICO, Cornerstone, AXA Mansard, LASACO, Fortis Global, IGI and Great Nigeria Insurance.
Major non-life firms on the list include Zenith General, Custodian and Allied, NEM, Heirs General, Mutual Benefits, NSIA, Linkage Assurance and Coronation Insurance.
Life insurers that met the requirement include Custodian Life, Heirs Life, Prudential Zenith Life, Stanbic IBTC Insurance and Coronation Life.
Continental Reinsurance and FBS Reinsurance were confirmed as compliant in the reinsurance category.
STRONGER FOUNDATION FOR GROWTH
NAICOM said the increase in capital will improve insurers’ ability to pay claims promptly, absorb emerging risks and support infrastructure financing. It added that the exercise has also enhanced investor confidence and attracted both domestic and foreign investment.
The commission issued detailed guidelines on eligible capital, asset admissibility and reporting to ensure a transparent process. It said the new capital base provides a stronger platform for risk-based supervision aligned with the size and complexity of each operator.
LOOKING AHEAD
NAICOM assured policyholders and investors that with NIIRA 2025 implementation continuing alongside digitisation, the focus will shift to consumer protection, market conduct and raising insurance penetration nationwide.
The commission listed post-recapitalisation priorities to include regular updates on companies undergoing verification, rollout of the Risk-Based Capital Framework and other initiatives to deepen market confidence.
“The successful completion of this recapitalisation exercise is not the destination but the foundation. 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,” the statement said.
