Naicom ordered an insurance company to submit a recapitalization plan on 30 September

The National Insurance Commission (Naicom) has ordered all insurance and reinsurance companies in Nigeria to submit their recapitalization plan on September 30.

Instructions to follow the enactment of the Nigerian Insurance Industry Reform (NIIR) Law law and aim to ensure the implementation of effective and smooth new capital threshold.

With Niira 2025, the minimum capital base for non-life insurance companies has been raised to N15 billion and N10 billion for life insurance companies.

Reinsurance companies get the most steep increase, with their capital threshold now pegged on N35 billion.

In a circular dated September 8, 2025, by Oluwatoyin Charles, Director of the Directorate of Supervision, the Commission stated that this framework was designed to strengthen the industry, improve financial health, and ensure smooth implementation of the new capital threshold.

Naicom stressed that compliance with NIIRA 2025 is mandatory and warns that they will strictly uphold the legal provisions of the insurance or reinsurance company by default.

The commission said the submission must include a board of resolution on compliance, capital status as in 2024 audited financial statements and the second quarter of June 2025, a statement of legal deposit with the Central Bank of Nigeria (CBN), and a detailed action plan about the source and time schedule for new capital injections.

“The guarantor who intends to find funds from the capital market is required to send their action plans based on file-and use,” said a circular.

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“Insurance companies that intend to combine or obtain others will submit their proposals, after that they must comply with the relevant provisions of this guideline and the existing insurance law.

“Portfolio transfer and runoff plan in which the joint company chose to stop the category of certain insurance businesses.”

Naicom also mandates the company to submit a report on monthly recapitalization progress no later than 10 days after each month.

“The progress report must include the MCR status of the insurance company calculated according to the template for MCR, the achievements achieved, and the efforts made to meet the recapitalization plan,” he added.

Babajide Okeowo