Nigeria Shuts an Insurer That Could Not Raise Enough Capital
Nigeria set a new capital floor for insurers and a deadline of 31 July. The first licence has now gone. The post Nigeria Shuts an Insurer That Could Not Raise Enough Capital appeared first on The Rio Times .
Nigeria's National Insurance Commission (NAICOM) has terminated the operating licence of Universal Insurance Plc, effective 14 August 2026, due to the company's inability to meet new minimum capital requirements within the compliance period. This decision led to the winding-up proceedings and has left shareholders facing potential losses of approximately ₦13.6 billion.
NAICOM appointed Ogbonna Chukwumerije of Pinheiro LP as the receiver and provisional liquidator, assuming control of the company's assets and liabilities for creditor-first resolution. The Nigerian Insurance Industry Reform Act 2025, signed by President Bola Ahmed Tinubu on 31 July 2025, mandated a 12-month recapitalisation exercise requiring insurers to meet new Minimum Capital Requirements by 30 July 2026.
Universal Insurance had attempted a ₦15 billion capital raise, but NAICOM concluded they failed to meet the prescribed minimum within the stipulated timeframe. This revocation impacts approximately eight insurers, with NAICOM emphasizing that policyholders' valid claims will not be nullified.
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