The National Insurance Commission(NAICOM) has, through a circular, notified all insurance and reinsurance companies that the recapitalisation exercise had earlier commenced on 31st of July, 2025.
This, it said, followed the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and assent of it by president Bola Ahmed Tinubu, on the same 31st of July 2025.
It then gives them till 30th of July, 2026 as the deadline for the recapitalisation exercise in the circular signed by the deputy commissioner for Insurance, Dr Usman J. Jankara! dated 12th of August, 2025 tagged: ‘NAICOM/CFI/DCT/NIIRA2025-RECAP/001 12TH AUGUST 2025,’ sighted by NATIONAL ECONOMY.
It then added that, “the NIIRA 2025 introduces higher Minimum Capital Requirements (MCR) of N10billion, N15billion, N25billion and N35billion for life, non-life, composite and reinsurance companies respectively and a shift to a Risk-Based Capital (RBC) framework for insurance and reinsurance companies in Nigeria.
“In line with the provisions of the Act, the new MCR takes effect from the date of Presidential assent, and all operators are required to comply fully within a twelve (12) month period from the effective date. All insurers and reinsurers shall comply with the requirements on or before the 30th day of July 2026.”
Stating that the commission shall, in due course, issue comprehensive guidelines and circulars detailing the modalities for the recapitalisation exercise, the expected circulars, it added, will detail: the composition of the MCR, Acceptable forms of capital, Procedures for capital verification, Qualifying assets for MCR purposes and criteria such as title, ownership, and existence as well as a standardised template for computation of MCR.
On treatment of Assets, insurers and reinsurers were informed that: Encumbered assets, assets without perfected title or ownership, and assets not in the full possession of an insurer/reinsurer shall be inadmissible for the purpose of meeting the MCR even as Assets that exceed prudential thresholds or do not meet the prescribed criteria shall also be deemed inadmissible.
During this exercise, the commission said, it will embark on verification of assets of underwriting firms, issues new certificates and fees, engages stakeholders, assuring the insurance industry and all stakeholders that the implementation of the new MCR, including the verification and confirmation processes, shall be conducted in a transparent, fair, and value-adding manner.
“All insurance and reinsurance companies are required to commence internal preparations, outline recapitalization plan, engage proactively and take immediate steps to comply with the new minimum capital requirements within the stipulated 12-month period. The Commission is committed to ensuring a successful implementation of the recapitalisation exercise,” it pointed out.
