The National Insurance Commission, NAICOM, has set a deadline of July 2026 for insurance and reinsurance companies to meet the new Minimum Capital Requirement, MCR. This announcement was made by the Commissioner for Insurance, Mr Olusegun Omosehin, in a notice issued in Abuja. The commission will begin implementing risk-based capital measures for companies that satisfy the MCR, with sufficient transition periods provided after the deadline.
The MCR has been set at N10 billion for life insurers, N15 billion for non-life insurers, and N35 billion for reinsurers. These timelines are designed to support the effective rollout of the Nigerian Insurance Industry Reform Act, NIIRA 2025, which was signed into law by President Bola Tinubu in August 2025. The act aims to modernize the insurance sector by consolidating previous legislation and introducing key reforms, including higher capital thresholds and mandatory timelines for claim settlement.
The recapitalization exercise is expected to enhance insurers’ solvency and underwriting capacity, enabling them to write larger policies and retain more risk within the country. This move is anticipated to boost public and investor confidence, attract capital, and spur strategic mergers and acquisitions that promote scale and operational efficiency. Furthermore, the recapitalization will improve the industry’s regional competitiveness, especially under the African Continental Free Trade Area, AfCFTA.
With stronger balance sheets, Nigerian insurers will be better positioned to pursue cross-border opportunities, design regional products, and underwrite major infrastructure and trade-related risks. The Commissioner for Insurance emphasized that recapitalization is essential for the industry’s future, stating that it is the “passport to that future.”
The July 2026 deadline serves as the final compliance cutoff for all operators under the updated framework. The commission’s commitment to a transparent, orderly, and risk-based transition to a stronger capital regime is evident in the firm timelines set. As the insurance industry in Nigeria prepares for this significant transition, the implementation of the new MCR is expected to have a positive impact on the sector, ultimately benefiting both insurers and policyholders.