As the July 30, 2026 recapitalisation deadline draws nearer, pressure is mounting across Nigeria’s insurance industry, with many operators scrambling to raise fresh capital and restructure operations to comply with the new minimum capital thresholds under the Nigerian Insurance Industry Reform Act 2025 (NIIRA).
- +Insurers scramble to meet July recapitalisation deadline
- +…Six insurance firms approach capital market to raise N60bn
While a handful of insurers have made significant progress, concerns are growing over the ability of weaker players to beat the deadline, raising the prospect of mergers, acquisitions, and possible market exits as the industry braces for a major transformation.
…Six insurance firms approach capital market to raise N60bn
While a handful of insurers have made significant progress, concerns are growing over the ability of weaker players to beat the deadline, raising the prospect of mergers, acquisitions, and possible market exits as the industry braces for a major transformation.
A council member of the Nigerian Insurers Association (NIA) and chief executive officer of one of the privately owned insurance companies said, “In my opinion, the timeframe for the insurance industry recapitalisation exercise is too short.”
Comparing the exercise with that of the banking industry, the CEO said, “Banks had two years to comply with theirs, while ours is just one year. We are doing our best to meet the deadline, and I do hope the regulator will make some concessions at the end of the day,” the CEO said, pleading anonymity.
Segun Omosehin, commissioner for Insurance/CEO of the National Insurance Commission (NAICOM), has emphasised the regulator’s commitment to ensuring that no company goes under during the recapitalisation programme.
Omosehin, speaking through Ekerete Ola Gam-Ikon, deputy commissioner for Insurance (Finance and Administration), during the 2026 NIA Awards and Recognition Ceremony held in Lagos, explained that the regulator is stepping up supervision as insurance companies work to comply with the capital requirements ahead of the deadline.
He said NAICOM has already identified firms with fragile finances and is assisting them with recovery plans, including restructuring and consolidation arrangements.
Omosehin emphasised that the authority has drawn a firm line against any insurer going under, noting that struggling operators are being supported through reorganisation efforts, partnerships, or takeovers to sustain their operations.
To strengthen public confidence, NAICOM is shifting its approach from shutting down troubled firms to preserving their operating licences by encouraging either mandatory or voluntary mergers.
Omosehin also pointed to the intervention in African Alliance Insurance as a model for how challenged companies can be revived and repositioned to continue operations instead of being liquidated.
“This emphasis on mergers and acquisitions forms part of a wider reform plan designed to reshape Nigeria’s insurance sector. The strategy prioritises protecting customers, enhancing supervisory efficiency, maintaining strong financial footing through the recapitalisation programme, and expanding market reach through more robust and better-funded institutions.”
Apart from the merging of companies, Omosehin pointed out that a stronger sector emerging from effective combinations would be better positioned to expand insurance penetration nationwide.
At the last count, about six Nigerian insurance companies have approached the capital market to raise about N60.68 billion in fresh funds.
Among the firms is Linkage Assurance Plc, which has also sought to raise N16.3 billion through a Rights Issue involving the issuance of 12.32 billion ordinary shares to existing shareholders, making it one of the largest ongoing capital raises in the sector.
Sovereign Trust Insurance Plc recently launched a N5.02 billion Rights Issue, offering 2.51 billion ordinary shares at N2.00 per share to existing shareholders.
SUNU Assurances Nigeria Plc is also seeking to raise N9.3 billion through a Rights Issue involving 2.08 billion shares priced at N4.50 per share.
Coronation Insurance Plc obtained shareholders’ approval to raise N9.26 billion through a private placement targeted at selected investors.
Universal Insurance Plc is equally pursuing a fresh capital injection of up to N15 billion, exploring a combination of a rights issue, public offer, and private placement to meet the recapitalisation threshold.
Similarly, Guinea Insurance Plc is targeting a N5.8 billion Rights Issue involving 5.3 billion ordinary shares at N1.10 per share.
With the signing of NIIRA 2025 by President Bola Ahmed Tinubu on August 5, 2025, insurance and reinsurance companies in Nigeria were given new minimum capital requirements, with July 31, 2026 set as the deadline for compliance.
Under the new requirements, life insurance companies are required to raise their minimum capital requirement (MCR) to N10 billion, general insurance companies to N15 billion, composite insurance companies to N25 billion, and reinsurance companies to N35 billion, alongside a transition to a Risk-Based Capital (RBC) framework.
