The National Insurance Commission (NAICOM) has set a July 2026 deadline for insurance and reinsurance companies to meet the new Minimum Capital Requirement (MCR). Commissioner for Insurance Olusegun Omosehin announced the deadline in a notice issued in Abuja. After the deadline, the commission will introduce risk‑based capital measures for firms that satisfy the MCR, providing sufficient transition periods.
The MCR is set at N10 billion for life insurers, N15 billion for non‑life insurers, and N35 billion for reinsurers. These timelines support the rollout of the Nigerian Insurance Industry Reform Act (NIIRA 2025), signed into law by President Bola Tinubu in August 2025. The act modernises the sector by consolidating previous legislation and introducing reforms such as higher capital thresholds and mandatory claim‑settlement timelines.
The recapitalisation exercise is expected to improve insurers’ solvency and underwriting capacity, enabling them to write larger policies and retain more risk domestically. This should boost public and investor confidence, attract capital, and stimulate strategic mergers and acquisitions that enhance scale and operational efficiency. Stronger balance sheets will also increase the industry’s regional competitiveness under the African Continental Free Trade Area (AfCFTA), allowing Nigerian insurers to pursue cross‑border opportunities, design regional products, and underwrite major infrastructure and trade‑related risks.
The Commissioner emphasised that recapitalisation is essential for the industry’s future, calling it the “passport to that future.” The July 2026 deadline marks the final compliance cutoff for all operators under the updated framework. NAICOM’s firm timelines demonstrate its commitment to a transparent, orderly, and risk‑based transition to a stronger capital regime. As the Nigerian insurance industry prepares for this significant shift, the new MCR is expected to have a positive impact on the sector, ultimately benefiting both insurers and policyholders.
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