The National Insurance Commission (NAICOM) has set July 2026 as the deadline for granting licenses to insurance and reinsurance firms that comply with the new Minimum Capital Requirement (MCR).
In a notice released on Thursday in Abuja, the Commissioner for Insurance, Olusegun Omosehin, explained that once the deadline passes, the commission will start enforcing risk-based capital regulations for companies that meet the MCR, with adequate transition periods granted beyond the deadline.
The notice also indicates that the date marks the ultimate compliance deadline for all operators under the revised regulatory framework. Omosehin added that the schedule was crafted to ensure a smooth implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
“Under NIIRA 2025 and NAICOM’s guidelines, we have set clear expectations by specifying the MCR at N10 billion for life insurers, N15 billion for non-life insurers, and N35 billion for reinsurers,” Omosehin said. “These timelines are firm and demonstrate our commitment to a transparent, orderly, and risk-based transition to a stronger capital regime.”
Omosehin noted that the recapitalization initiative will strengthen insurers’ financial stability and underwriting capacity, allowing them to handle larger policies and keep more risk within Nigeria. He said the effort will also strengthen public and investor trust, draw in new capital, and encourage strategic mergers and acquisitions that enhance scale and operational efficiency.
He further explained that recapitalization will elevate the industry’s competitiveness across the region, particularly within the framework of the African Continental Free Trade Area (AfCFTA). With more robust balance sheets, he said, Nigerian insurers will be better equipped to explore cross-border markets, develop regional products, and take on major infrastructure and trade-related risks.
“Recapitalization is the passport to that future,” he said.
President Bola Tinubu enacted the NIIRA 2025 Act in August 2025 to update and streamline the insurance industry by unifying earlier laws and implementing major reforms, such as increased capital requirements.
