NIIRA 2025: NAICOM releases draft guidelines on minimum capital requirements
National Insurance Commission NAICOM
Nike Popoola
In exercise of the powers conferred on it by the Nigerian Insurance Industry Reform Act (NIIRA) 2025, the National Insurance Commission (NAICOM) has issued the Guidelines on the implementation of the Minimum Capital Requirements (MCR) for insurance and reinsurance companies in Nigeria.
This guidelines, sent to the regulated companies for their inputs would be read in conjunction with the provisions of the NIIRA 2025, the NAICOM Act 1997 as well as other extant regulations issued by the Commission from time to time.
The objectives are to give effect to the provisions of NIIRA 2025; Provide guidance and clarity on MCR; Provide guidance on admissible and inadmissible assets and liabilities; Set the timelines for the implementation of MCR; Align capital requirements with risk exposure and best practices; Ensure seamless consolidation and transition to new capital regime; and Strengthen the capacity of insurance and reinsurance companies in Nigeria.
The NIIRA 2025 introduces higher Minimum Capital Requirements (MCR) of N10billion, N15billion, N25billion and N35billion for life, non-life, composite and reinsurance companies respectively and a shift to a Risk-Based Capital (RBC) framework for insurance and reinsurance companies in Nigeria.
NAICOM had set 30th July 2026, as the deadline for all insurers and reinsurers to comply with the new capital requirements.
