At least 12 insurance companies are in a race against time to meet the July 31, 2026 recapitalisation deadline set by the National Insurance Commission (NAICOM), with industry watchers predicting some may fail to scale through.
Following the signing of the Nigerian Insurance Industry Reform Act 2025 (NIIRA 2025), operators were mandated to significantly increase their capital base. Life insurance firms must now raise operating capital from N2 billion to N10 billion, general insurance firms from N3 billion to N15 billion, and reinsurance firms from N10 billion to N35 billion.
Vanguard investigations revealed that NAICOM recently held a strategic meeting with about 12 companies deemed “largely motionless” in the recapitalisation drive. During the meeting, the Commissioner for Insurance, Mr. Segun Omosehin, reiterated that the deadline would not be extended and directed the affected firms to disclose challenges slowing their efforts.
“It goes beyond my power as insurance commissioner to extend the deadline because it was stated by the NIIRA 2025 and cannot be shifted by any authority except with the amendment of the law,” Omosehin was quoted as saying.
Facing the pressure, some operators are considering drastic measures. One company has reportedly resolved to shut down its life insurance arm and focus solely on the general insurance segment to meet the requirement. Others are jettisoning business lines to fit into lower capital thresholds.
NAICOM has warned that any company that fails to comply risks deregistration by August 2026. Meanwhile, analysts predict the looming deadline will trigger a wave of mergers and acquisitions as weaker firms seek lifelines from stronger players.
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