43 Insurers, Reinsurers Meet NIIRA 2025 Capital Requirements

No fewer than 43 insurance and reinsurance companies have met the new minimum capital requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, marking a significant milestone in the ongoing recapitalisation of the country's insurance sector. The development comes ahead of the regulatory deadline set by the National Insurance Commission (NAICOM) for full compliance with the new capital regime.

The NIIRA 2025 introduced higher capital thresholds of ₦10 billion for life insurers, ₦15 billion for general insurers, ₦25 billion for composite insurers and ₦35 billion for reinsurers, alongside a transition to a risk-based capital framework. The reforms are aimed at strengthening the financial capacity of operators, improving claims settlement and enhancing public confidence in the insurance industry.

Industry stakeholders said the compliance level demonstrates operators' commitment to adapting to the new regulatory environment. They noted that many companies achieved the new thresholds through fresh capital injections, mergers, acquisitions and internal restructuring, while others continue efforts to meet the outstanding requirements before the deadline.

NAICOM has maintained that the recapitalisation exercise is designed to build a more resilient insurance industry capable of underwriting larger risks and supporting Nigeria's economic development. The Commission said companies that fail to comply with the minimum capital requirements within the stipulated timeframe could face regulatory sanctions, including restrictions on underwriting new business.

Experts believe the reforms will improve the industry's competitiveness, attract greater investment and position Nigerian insurers to participate more effectively in major local and international transactions. They also expressed optimism that stronger capitalisation would boost policyholders' confidence and enhance the sector's contribution to national economic growth.