The National Insurance Commission (NAICOM) has directed all Insurance companies to submit their recapitalisation plans to the commission on or before September 30, 2025.
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Insurers are to include in their submission, a board resolution on compliance, capital status as at the 2024 audited financial statements and June 2025 second-quarter returns, a statement on statutory deposits with the Central Bank of Nigeria (CBN), and a detailed action plan on sources and timelines for fresh capital injection.
“Insurers intending to seek funds from the Capital Markets are required to submit their plan of action on a file-and-use basis,” NAICOM said.
“Insurer that intends to merge or acquire another shall submit their proposal, after which they must comply with the relevant provisions of these Guidelines and extant insurance laws.
“Portfolio Transfer and Run-Off Plan where a composite company that chose to discontinue a particular category of insurance business.”
NAICOM also mandated firms to file monthly recapitalisation progress reports not later than 10 working days after each month-end.
“The progress report shall include the MCR status of the insurer computed in line with the Template for MCR, achieved milestones, and efforts made to meet the recapitalisation plan,” the circular said.
“Where an insurer has met the required MCR, it shall continue to submit the recomputed MCR status at the end of each month until the issuance of a licence, or such other time as the Commission may determine.
“All assets’ disposals, including the sales proceeds and their applications during and after the recapitalisation exercise, shall be clearly disclosed and reported in the monthly and quarterly reports.”
According to the guidelines, capital verification exercises will begin on November 1 and conclude no later than June 30, 2026.
Insurers are expected to provide evidence of ownership, title, and valuation of admissible assets, supported by actuarial reports.
Also, insurers are to submit evidence of statutory deposit with CBN on or before May 30, 2026.
The commission said the final compliance deadline is on July 30, 2026.
On Monday, NAICOM release new guidelines on the Minimum Capital Requirement for insurance and reinsurance companies in Nigeria. NAICOM’s directive comes on the heels of the Nigerian Insurance Industry Reform Act 2025 and is aimed at facilitating the smooth and effective enforcement of the newly established capital thresholds for operators across the sector.
President Bola Ahmed Tinubu assented to the Nigerian Insurance Industry Reform Bill, 2025 in August. The landmark legislation which is expected to strengthen Nigerian’s financial sector and accelerate the nation’s march toward a US$1 trillion economy.
The new insurance Act stipulates that the minimum capital base for non-life insurers has been raised to N15 billion, while the capital requirement for life insurance firms is now at least N10 billion.
Reinsurance companies got the steepest increase, with their capital threshold now pegged at N35 billion.
In the circular, the commission’s Director of Supervision Directorate, Oluwatoyin Charles, said the framework is designed to strengthen the industry, enhance financial soundness, and ensure seamless implementation of the new capital thresholds.
NAICOM stressed that compliance with the NIIRA 2025 is mandatory and warned it would strictly enforce provisions of the law against any insurer or reinsurer in default.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
