Nigeria’s insurance regulator has ordered a fivefold increase in minimum capital for operators, giving them 12 months to comply or face licence withdrawal.
Under the directive from the National Insurance Commission, non-life insurers must raise capital from ₦3bn to ₦15bn, life insurers from ₦2bn to ₦10bn, and reinsurers from ₦10bn to ₦35bn.
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The changes, part of the new Insurance Industry Reform Act signed by President Bola Tinubu this month, are aimed at strengthening risk-bearing capacity, improving claims settlement and boosting investor confidence.
Insurance stocks on the Nigerian Exchange jumped nearly 8% on the news, even as the broader All-Share Index slipped 0.1%.
The move forms part of a wider reform push, including higher bank capital thresholds, subsidy removal, currency liberalisation and tax changes, with the government targeting a $1tn economy by 2030.
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