Nigerian insurance companies that have failed to meet the new recapitalisation requirements risk losing their operating licences as the deadline set by the National Insurance Commission (NAICOM) expires today, July 31, 2026.
The Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Omosehin, has ruled out any further extension of the deadline, leaving operators that have not achieved the required capital levels facing possible regulatory sanctions.
Omosehin said the recapitalisation exercise was designed to improve insurers’ claims-paying capacity, strengthen balance sheets, increase domestic risk retention and prepare the industry for a transition to a risk-based capital framework.
Under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, life insurance companies are required to maintain a minimum capital base of N10 billion, non-life insurers N15 billion, composite insurers N25 billion, and reinsurers N35 billion.
NAICOM has warned that companies unable to meet the requirements may face regulatory action, including liquidation, mergers or other resolution measures considered appropriate by the commission.
The commission has not yet released the latest number of insurance companies that have successfully completed the recapitalisation process, creating uncertainty among industry operators as the deadline takes effect.
Stakeholders have continued to appeal for more time, arguing that many insurers are struggling to raise the required funds due to challenging market conditions.
Industry operators said accessing capital through the Nigerian capital market has been difficult, partly because insurers began their recapitalisation process after banks had already completed theirs, reducing available investor funds.
Reports indicate that at least eight insurance companies have approached the capital market to raise fresh capital, while several others are exploring mergers and acquisitions to avoid losing their licences.
Industry estimates suggest that insurers require more than N1 trillion in additional capital to fully comply with the new requirements.
The recapitalisation exercise comes amid high interest rates, foreign exchange volatility and tight liquidity conditions, which have made fundraising more challenging for many operators.
Some insurers are also seeking partnerships with foreign investors as part of efforts to strengthen their financial positions and meet regulatory requirements.
Experts said merger discussions remain active across the industry as companies seek strategic combinations that will allow them to comply with NAICOM’s rules and continue operations.
NAICOM maintained that the exercise would be conducted transparently and fairly, while insisting that all operators must demonstrate financial strength, regulatory compliance and operational readiness to support the growth of Nigeria’s insurance sector.
