Only 25 Of 58 Nigerian Insurers Seek Capital Verification As NAICOM Recapitalisation Deadline Nears

Only 25 of 58 Nigerian Insurers Seek Capital Verification as NAICOM Recapitalisation Deadline Nears Nigeria’s insurance industry is facing mounting pressure ahead of the National Insurance Commission NAICOM recapitalisation deadline, with only 25 of the country’s 58 licensed insurance companies having applied for mandatory capital verification barely one month before the compliance date.

The capital verification exercise is a key requirement under the Nigerian Insurance Industry Reform Act NIIRA 2025, which introduced significantly higher minimum capital requirements aimed at strengthening the financial capacity of insurers, improving consumer protection, and enhancing the sector’s competitiveness.

Industry stakeholders have expressed concern that the low level of participation could leave many operators struggling to meet the July 31, 2026 recapitalisation deadline. The verification process, conducted by four independent audit firms appointed by NAICOMPwC, KPMG, Deloitte, and EY—is required before companies can be certified as compliant.The new capital thresholds require life insurance companies to maintain a minimum capital of ₦10 billion, general insurers ₦15 billion, composite insurers ₦25 billion, and reinsurance companies ₦35 billion. The reforms are designed to create a stronger, more resilient insurance industry capable of underwriting larger risks and supporting economic growth. NAICOM

Despite industry appeals for more time, NAICOM has consistently maintained that the recapitalisation deadline remains unchanged. Commissioner for Insurance Olusegun Omosehin has urged insurers to treat the exercise with urgency while assuring policyholders that the regulator is working with weaker firms through restructuring, mergers, and acquisitions where necessary to preserve market stability. Analysts believe the recapitalisation exercise could reshape Nigeria’s insurance landscape, with financially stronger firms expected to consolidate their positions, while smaller operators may pursue mergers or acquisitions to remain in business. The outcome is expected to significantly influence the future structure and competitiveness of the country’s insurance sector.