Nigerian insurers and reinsurers face new minimum capital requirements

The National Insurance Commission (NAICOM) has announced new minimum capital requirements for insurers and reinsurers operating in Nigeria.

This move follows the enactment of a new insurance law by the Nigerian government in early August 2025.

The companies concerned must meet the revised capital thresholds within twelve months, that is, by July 2026:

• 15 billion NGN (9.8 million USD) instead of 3 billion NGN (2 million USD) for non-life companies
• 10 billion NGN (6.5 million USD) instead of 2 billion NGN (1.3 million USD) for life entities
• 35 billion NGN (22.8 million USD) instead of 10 billion NGN (6.5 million USD) for reinsurers

To oversee the recapitalization process, NAICOM has established an 11-member committee.

This initiative aims to bolster the financial stability of the insurance sector, enhance claims management, and attract further investment.