The directive follows the enactment of the Nigerian
Insurance Industry Reform Act (NIIRA) 2025 and is aimed at ensuring effective
and seamless implementation of the new capital thresholds.

According to the NIIRA 2025, the minimum capital base for
non-life insurers has been raised to N15 billion, while the capital requirement
for life insurance firms is now at least N10 billion.

Reinsurance companies got the steepest increase, with their
capital threshold now pegged at N35 billion.

In a circular on Monday by Oluwatoyin  Charles, director of the supervision
directorate, the commission said the framework is designed to strengthen the
industry, enhance financial soundness, and ensure seamless implementation of
the new capital thresholds.

NAICOM stressed that compliance with the NIIRA 2025 is
mandatory and warned it would strictly enforce provisions of the law against
any insurer or reinsurer in default.

SUBMISSION OF RECAPITALISATION PLANS

NAICOM directed all insurers to submit their
recapitalisation plans to the commission on or before September 30, 2025.

The commission said the submission must include a board
resolution on compliance, capital status as at the 2024 audited financial
statements and June 2025 second-quarter returns, a statement on statutory
deposits with the Central Bank of Nigeria (CBN), and a detailed action plan on
sources and timelines for fresh capital injection.

“Insurers intending to seek funds from the Capital Markets
are required to submit their plan of action on a file-and-use basis,” NAICOM
said.

“Insurer that intends to merge or acquire another shall
submit their proposal after which they must comply with the relevant provisions
of these Guidelines and extant insurance laws.

“Portfolio Transfer and Run-Off Plan where a composite
company that chose to discontinue a particular category of insurance business.”

MONTHLY REPORTS AND
CAPITAL VERIFICATION

NAICOM also mandated firms to file monthly recapitalisation
progress reports not later than 10 working days after each month-end.

“The progress report shall include the MCR status of the
insurer computed in line with the Template for MCR, achieved milestones and
efforts made to meet the recapitalisation plan,” the circular said.

“Where an insurer has met the required MCR, it shall
continue to submit the recomputed MCR status at the end of each month until the
issuance of a licence, or such other time as the Commission may determine.

“All assets’ disposals, including the sales proceeds and
their applications during and after the recapitalisation exercise, shall be
clearly disclosed and reported in the monthly and quarterly reports.”

RECAPITALISATION
PROGRESS REPORT

According to the guidelines, capital verification exercises
will begin on November 1 and conclude no later than June 30, 2026.

Insurers are expected to provide evidence of ownership,
title and valuation of admissible assets, supported by actuarial reports.

Also, insurers are to submit evidence of statutory deposit
with CBN on or before May 30, 2026.

The commission said the final compliance deadline is on July
30, 2026.

On September 4, the Securities and Exchange Commission (SEC)
said it has created a dedicated desk to fast-track approvals for insurance
sector recapitalisation.

SEC said the commission will deliver decisions within 14
days of complete submissions.