NAICOM Raises Insurance Capital Requirements for Life, Non-Life, Reinsurance Companies

The National Insurance Commission (NAICOM) has announced an increase in the insurance capital requirements for life, non-life, and reinsurance companies in Nigeria. The new mandate, set by the Nigerian Insurance Reform Act of 2025, requires a life insurance company to have a minimum capital of at least N10 billion, while a non-life insurer must have N15 billion.

The largest boost was given to reinsurance companies, with a capital threshold of N35 billion. Previously, the capital base for reinsurance firms, life insurance companies, and non-life insurers was N10 billion, N3 billion, and N2 billion respectively.

This represents a 400 percent increase for life insurance companies and a 250 percent increase for reinsurance organizations. The law stipulates that within a year of the Act's implementation, insurers already in operation must comply with the additional capital requirement.

Additionally, the NIIRA Act requires gas and petroleum filling stations, as well as vehicles transporting goods insured against unintentional fire or.