NAICOM Raises Micro Insurance Firms' Capital to N3 Billion

The National Insurance Commission (NAICOM) has announced an upgrade to the minimum capital base for micro insurance firms in Nigeria, raising it to N3 billion. This new requirement replaces the previous tier structure, which allowed for minimum capital bases of N40 million for unit micro insurance firms, N100 million for state operations, and N600 million for national operations.

The change is part of the Nigeria Insurance Industry Reform Act (NIIRA) 2025, which aims to strengthen the financial capacity of micro insurance firms and enhance coverage for underserved communities, particularly low-income individuals and micro-entrepreneurs. The new capital base will take effect this month and is intended to guide the market towards providing simplified insurance products that are easy to understand and tailored to the target market.

NAICOM's mandate under the act includes fostering growth in micro insurance and integrating it into the broader insurance market, recognizing its vital role in increasing financial inclusion.