Nigerian Authorities Announce Major Reform of Insurance Sector
The Nigerian authorities have announced a major reform of the insurance sector, giving companies a one-year deadline to quintuple their minimum capital. The measure, enshrined in the new Nigerian Insurance Industry Reform Act (NIIRA) 2025, aims to strengthen the financial solidity of the market and encourage its modernization.
According to several international sources, the new capital thresholds are set at ₦10 billion for life insurers (up from ₦2 billion previously), ₦15 billion for non-life insurers (up from ₦3 billion), ₦25 billion for composite companies, and ₦35 billion for reinsurers (up from ₦10 billion). Companies have until July 2026 to comply with these requirements, or face penalties that could go up to license revocation.
According to the same sources, the regulator NAICOM has set up a monitoring committee to verify the reality of capital increases, which is expected to accelerate merger and acquisition operations in a still-fragmented sector.
This recapitalization is presented by the government of Bola Ahmed Tinubu as a key step in the transition to a risk-based capital supervision framework. Several observers believe that it will lead to a rapid consolidation of the market, but will ultimately strengthen the resilience and credibility of Nigerian insurance.
