For clarity, under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, life insurance companies are required to raise their minimum paid-up capital to N10 billion from N2 billion; non-life insurers to N15 billion from N3 billion and composite insurers are expected to increase to N25 billion. Reinsurance companies’ new capital requirement is set at N35 billion.
Also, existing operators now have a month left on the transition window, a timeline that had focused on capital mobilisation, strategic partnership negotiation and book clean-up.
Industry estimates suggest that insurers collectively need close to N1 trillion in fresh capital to meet the new thresholds. The amount is over one-fifth of the amount banks pulled from both local and international markets.
The huge capital demand is raising concerns from the insurance industry players who fear that a possible collapse may lead to massive job loss in the sector.
Multiple sources close to NAICOM told The Guardian that the regulator is determined to ensure full implementation of the deadline.
