August 15, 2025/CSL Research

The National Insurance Commission (NAICOM) has given insurance companies a one-year deadline to increase their capital bases in compliance with the recapitalisation requirements outlined in the recently approved Insurance Industry Reform Act. Under the new rules, non-life insurers must raise their capital base from ₦3 billion to ₦15 billion, life insurers from ₦2 billion to ₦10 billion, and reinsurers from ₦10 billion to ₦35 billion.

We note that this substantial increase in capital requirements is aimed at strengthening the resilience of the insurance sector and ensuring that insurers remain financially sound and capable of meeting their obligations. Moreover, we highlight that the recapitalisation directive also aligns with broader financial market reforms, including the ongoing capital base expansion for lenders. Authorities expect that these measures, taken together, will play a critical role in supporting Nigeria’s ambition of achieving a US$1 trillion economy by 2030.

Click here to download full report: ​​​​​​​​​​​​​​​​​​​​​​​​CSL Nigeria Daily – 15 August 2025 – Insurance.pdf​​​​​​​​​​​​​​​​​​​