Joy Agwunobi
The National Insurance Commission (NAICOM) has given insurance and reinsurance companies in Nigeria until September 30, 2025, to submit their recapitalisation plans. This marks a major step in the implementation of the newly enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The directive is contained in NAICOM’s draft Guidelines on the Implementation of the Minimum Capital Requirements (MCR) for insurance and reinsurance firms, a framework designed to strengthen the capital base of players in the sector and ensure compliance with global best practices.
According to the NAICOM guidelines, each insurance and reinsurance company is required to file its recapitalisation plan alongside supporting documents with the regulator before the deadline. The submission, NAICOM stressed, must outline the company’s board resolution on compliance, its capital status as reflected in the 2024 audited accounts and second-quarter 2025 returns, and a detailed action plan for capital injection including sources, amounts, timelines and deliverables.
Companies planning to raise funds from the capital market are expected to submit a file-and-use plan of action, while those seeking mergers or acquisitions must provide proposals in line with the guidelines and other existing insurance laws. Composite firms that opt to discontinue a line of business are required to submit a portfolio transfer or run-off plan.
In addition to the recapitalisation plan, NAICOM said operators will be obligated to submit a Recapitalisation Progress Report every month—no later than five working days after each month ends. The report must show the company’s MCR status, milestones achieved, and efforts made to meet the recapitalisation targets. Even firms that have already met the MCR threshold must continue filing monthly updates until a new licence is issued or otherwise directed by NAICOM.
Section 14 of the guidelines further mandates capital verification for all insurers and reinsurers that claim compliance with MCR. This verification, which will commence on November 1, 2025, requires the submission of supporting evidence on the existence, value, title and ownership of admissible assets, as well as an actuarial valuation of insurance liabilities and funds. The verification exercise must be concluded by June 30, 2026.
The timetable also establishes key milestones for operators. By May 30, 2026, all insurance and reinsurance firms are expected to submit evidence of statutory deposit payments to the Central Bank of Nigeria. Any directives arising from the capital verification exercise must be fully complied with by June 30, 2026, while the final compliance date for the entire recapitalisation process is fixed for July 2026.
Section 15(5) of NIIRA 2025 prescribes the composition of the Minimum Capital Requirement for existing companies as the excess of admissible assets over liabilities, minus the value of own shares held by the insurer. Admissible assets include cash and bank balances, term deposits, government securities, quoted corporate bonds, commercial papers, quoted equities, loans to policyholders and agents, reinsurance assets, certified premium receivables, statutory deposits, and investment properties (subject to a cap of 20 percent of MCR at the lower of cost or fair value).
The recapitalisation drive, according to NAICOM, reflects broader ambition to reposition the Nigerian insurance industry on a stronger financial footing, enhance policyholder protection, and improve market confidence in line with the reform thrust of NIIRA 2025.
FG sets 44m insurance target as it pushes new health financing agenda
The federal government has announced an ambitious plan to expand health insurance coverage to 44 million Nigerians by 2030, as part of efforts to reduce the country’s heavy reliance on out-of-pocket payments for healthcare and build a more sustainable financing framework.
Iziaq Salako, minister of state for health and social welfare, disclosed this at the opening of the National Health Financing Policy Dialogue in Abuja, where policymakers and stakeholders converged to chart a new course for Nigeria’s health sector.
Salako described the dialogue as a turning point for translating political commitments into actionable strategies that will shape the future of health financing in the country. He noted that the theme of the event, “Reimagining a New Era of Health Financing,” underlines Nigeria’s push for enhanced domestic resource mobilisation and reduced dependence on donor aid.
According to him, President Bola Ahmed Tinubu has made strengthening health systems a priority for national growth, mandating the implementation of interconnected policies to drive universal health coverage.
“Under the Presidential Performance Agreement we signed, a key deliverable for the Ministry is to enroll at least 44 million Nigerians into the national health insurance scheme by 2030. This will help reduce out-of-pocket expenditure on health, which currently stands at an unacceptably high rate of about 70 percent,” Salako said.
Rising health allocations, but gaps remain
The minister pointed to steady increases in government health spending over the past five years—from ₦434 billion in 2018 to ₦1.2 trillion in 2021. The proposed ₦2.48 trillion allocation for 2025, representing 5.18 percent of the federal budget, more than doubles the 2021 figure.
However, he admitted that Nigeria still falls short of the 15 percent benchmark agreed under the 2001 Abuja Declaration. To bridge the gap, Salako revealed that the National Assembly recently raised the 2024 health budget by ₦300 billion following the suspension of U.S. aid, while state governments have also increased their allocations. As a result, health expenditure as a share of GDP climbed from 3.4 percent in 2013 to 5.03 percent in 2024.
Reaffirming the government’s commitment to the National Health Insurance Authority (NHIA) Act of 2012, Salako said mandatory health insurance and the Vulnerable Group Fund will continue to serve as critical tools for expanding access. He added that the Basic Health Care Provision Fund (BHCPF)—financed with 1 percent of consolidated revenue—is a lifeline for the poor and vulnerable, and discussions are ongoing to raise the allocation to at least 2 percent.
“We remain focused on strengthening the framework, expanding coverage, ensuring sustainability, and addressing persistent challenges such as inadequate budgetary allocations, systemic inefficiencies, fragmented programming, and limited reliable data,” he said.
Salako also called on Nigeria to draw lessons from neighbouring Ghana, where strong political commitment, innovative funding models, and decentralised implementation have helped build a more resilient health system.
He urged participants at the policy dialogue to actively exchange ideas, share best practices, and develop partnerships that will translate into concrete reforms. The ultimate objective, he stressed, is to establish a financing system that is sustainable, transparent, and inclusive, ensuring every Nigerian can access healthcare without financial hardship.
NHIA surpasses 2024 enrollment target
In a related development, the National Health Insurance Authority (NHIA) announced in December 2024 that it had exceeded the presidential target for health insurance enrollment, with the number of enrollees rising from 16.7 million to 19.2 million Nigerians.
Kelechi Ohiri, director-general of the NHIA, said the agency is now set to grow coverage by an additional 20 percent in 2025, as part of the broader push to expand access and meet the 2030 goal.
