NAICOM Sets July 2026 Deadline For New Insurance Capital Requirements

The National Insurance Commission (NAICOM) has granted insurers and reinsurers a 12-month window to meet the new Minimum Capital Requirements (MCR) introduced under the Nigeria Insurance Industry Reform Act (NIIRA) 2025.

According to a circular issued by the Commission, all operators must comply with the revised MCR and applicable Risk-Based Capital (RBC) framework on or before July 30, 2026.

The recapitalisation exercise officially commenced on July 31, 2025, following the assent of President Bola Tinubu to the NIIRA 2025, which prescribes higher capital thresholds of N10 billion, N15 billion, N25 billion, and N35 billion for life, non-life, composite, and reinsurance companies, respectively.

“A 12-month period has been provided for insurers and reinsurers to comply with the new MCR as well as the applicable RBC as may be determined. All insurers and reinsurers shall comply with the requirements on or before the 30th day of July 2026,” the commission stated.

NAICOM stated that it will, in due course, release comprehensive guidelines and circulars detailing the modalities of the recapitalisation. “The Commission shall, in due course, issue comprehensive guidelines and circulars detailing the modalities for the recapitalisation exercise.”

The Commission said those will cover the composition of the MCR, acceptable forms of capital, procedures for capital verification, qualifying assets, ownership and title criteria, and a standardised computation template.

The Commission emphasised that encumbered assets, those without perfected title or ownership, and those not in the full possession of an insurer or reinsurer will be inadmissible in meeting the MCR. ‘Assets exceeding prudential thresholds or failing to meet prescribed standards will also be disqualified’, it said.

All assets will undergo verification by the Commission or its appointed agents. In cases requiring non-standard verification due to the nature or circumstances of an asset, the associated costs will be borne by the concerned insurer or reinsurer.

NAICOM disclosed that operators who meet the new MCR, pay the requisite fees, and receive confirmation from the Commission will be issued new operating licences while those unable to comply within the stipulated period will face liquidation, merger, or other regulatory actions deemed appropriate.

In order to facilitate the process, the Commission said it will engage relevant regulators such as the Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), Nigerian Stock Exchange (NSE), and other stakeholders to secure possible incentives and concessions aimed at easing compliance and reducing costs.

NAICOM assured stakeholders that the implementation, verification, and confirmation processes will be transparent, fair, and value-adding, with the ultimate goal of strengthening the financial soundness of the industry, boosting public confidence, and ensuring the benefits of NIIRA 2025 accrue to Nigerians.

The insurance watchdog said an in-house committee has been established to oversee, coordinate, guide, monitor, and implement the recapitalisation exercise across the sector.

All insurance and reinsurance companies have been directed to commence internal preparations, outline their recapitalisation plans, engage proactively, and take immediate steps to meet the new requirements within the 12-month deadline.

The Commission reiterated its commitment to ensuring a successful recapitalisation exercise in line with the NIIRA 2025 provisions.