NAICOM stands firm as insurers approach recapitalisation deadline
Over 70% of insurers complete capital verification ahead of July 31 cutoff
Nigeria’s insurance industry is entering the final stretch of the recapitalisation exercise mandated by the National Insurance Commission (NAICOM), with more than 70 per cent of insurers already completing independent capital verification ahead of the July 31, 2026 deadline.
NAICOM has maintained that the deadline is final, ruling out any further extension as insurers race to meet new minimum capital requirements that are up to five times higher than previous thresholds.
According to the Chairman of the Nigerian Insurers Association (NIA), Mrs. Ebelechukwu Nwachukwu, more than 70 per cent of insurers have completed the independent verification process, which was carried out by the Big Four audit firms: KPMG, PwC, Deloitte, and EY.
Beyond the capital verification, insurers have also been required to submit monthly capital reports to NAICOM since December 2025 and to lodge a statutory deposit equivalent to 10 per cent of their new minimum capital with the Central Bank of Nigeria. NAICOM says the majority of insurers have complied with this requirement.
The recapitalisation exercise, backed by the Nigerian Insurance Industry Reform Act, 2025, raises minimum capital requirements across the board. Non-life insurers must now hold N15 billion, up from N3 billion, while life insurers are required to raise their capital base to N10 billion from N2 billion. Reinsurers face the steepest increase, with minimum capital rising to N35 billion from N10 billion.
Some insurers have already moved to meet the new thresholds. Linkage Assurance Plc, for instance, completed a N16.2 billion rights issue on Monday to shore up its capital position ahead of the deadline.
NAICOM, under the leadership of Commissioner Olusegun Omosehin, says the exercise is designed to strengthen the sector’s capital base, improve insurers’ ability to pay claims, and boost public confidence in the industry.
The regulator also expects the reform to trigger a wave of mergers and acquisitions, as companies unable to meet the new capital requirements look to merge with or be acquired by stronger players.
Despite the tough new thresholds, NAICOM says it remains committed to preventing the collapse of any licensed insurer and to ensuring an orderly transition as the recapitalisation deadline approaches.
