Recapitalisation: NAICOM Breaks Age-old Jinx

NAICOM successfully concluded a 12-month recapitalisation exercise in the Nigerian insurance sector on August 13th, 2026, after years of failed attempts. The exercise, which began in July 2025, faced opposition and allegations of unlawful demands from shareholders, illegal transfers of funds, and a significant recapitalisation fee. However, the NIIRA 2025, backed by law and supported by the present commissioner for Insurance, Mr Olusegun Ayo Omosehin, ensured the success of the exercise.

Following the recapitalisation, NAICOM has issued new operating licenses to successful companies, reducing the number of insurance and reinsurance companies in the country from 60 to 50. These include 48 primary insurance companies and two reinsurance firms. The names of licensed insurance companies in the country are listed in the source.

The recapitalisation exercise was carried out in compliance with the NIIRA 2025, which introduced higher minimum capital requirements for insurance and reinsurance companies. Life insurance firms were required to upgrade their capital from N2 billion to N10 billion, while general business underwriters needed to increase theirs from N3 billion to N15 billion. Composite firms were required to raise their capital from N5 billion to N25 billion, and reinsurers needed to upgrade from N10 billion to N35 billion.

However, some companies failed to meet the new requirements and were not included in the list of successful companies. Notably, the Nigerian Agricultural Insurance Corporation (NAIC), which specialised in agric insurance underwriting, was not included despite being owned by the Federal Government. African Alliance Insurance Plc also failed to make the list.

Non-compliant firms, including Nigeria Reinsurance Corporation, had their operating licenses withdrawn and were placed under liquidation. The regulator appointed liquidators for these firms and withdrew their licenses after they failed to meet the statutory minimum capital requirement. One of the owners of these firms, Jimo Ibrahim, contested the decision in an open letter to President Bola Tinubu, claiming that his companies met the recapitalisation requirements and accusing the regulator of imposing illegal levies.

Stakeholders' reactions to the recapitalisation exercise varied, with some praising the success of the initiative and others expressing concerns over the treatment of certain firms and the potential implications for the insurance sector.