NAICOM Confirms Insurance Industry Raises ₦1.079trn In Recapitalisation

By Sola Alabadan

The recently concluded recapitalisation exercise in the Nigerian insurance industry produced a total capital of ₦1.079 trillion, the Commissioner for Insurance and Chief Executive Officer of National Insurance Commission (NAICOM), Mr Olusegun Omosehin said on Thursday in Lagos.

Omosehin, who stated this during an interactive session with insurance journalists, affirmed that the capital raised through the exercise represented a significant achievement in the Commission’s drive to reposition the industry, strengthen the capacity of operators and enhance the sector’s contribution to the Nigerian economy.

In line with Section 15 and other relevant provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, NAICOM had given insurance companies a period of 12 months which expired on July 31, 2026 to meet up with the new capital requirements.

Non life insurance companies were required to maintain a minimum capital of ₦15 billion, while life assurance companies were mandated to increase their capital to a minimum of ₦10 billion and Reinsurance firms were asked to raise their capital base to a minimum of ₦35 billion.

At the end of the exercise, 50 insurance outfits comprising of 48 insurance and reinsurance companies successfully met the prescribed Minimum Capital Requirements.

According to him, the stronger capital base would enable insurance companies to underwrite larger and more complex risks, improve their capacity to meet policyholder obligations and retain more risks within Nigeria.

He added that the recapitalisation was also expected to enhance the industry’s ability to support major investments and economic activities while improving confidence in insurance as a critical component of the financial system.

The Commissioner commended insurance operators and other stakeholders for their cooperation and commitment throughout the recapitalisation process, which culminated in the review of operators’ capital positions and regulatory compliance.

The exercise was initiated by NAICOM as part of a broader effort to strengthen the financial foundation of the insurance industry and address the sector’s limited capacity to retain large risks.