NAICOM Revokes Nigeria Reinsurance Corporation License Over Capital Shortfall

The National Insurance Commission (NAICOM) revoked the operating license of the Nigeria Reinsurance Corporation on August 3, 2026, after the company failed to meet statutory Minimum Capital Requirements (MCR). This enforcement action follows the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed by President Bola Ahmed Tinubu, which mandates minimum paid-up capital of ₦15 billion for life insurance, ₦25 billion for non-life insurance, and ₦45 billion for reinsurance.

To oversee the winding-up process, NAICOM appointed Dr. Muiz Banire as the Receiver/Provisional Liquidator. On August 4, Banire froze all bank accounts belonging to the corporation and issued a public notice directing financial institutions, policyholders, and creditors to disregard any instructions not issued by his office. Banire is now tasked with recovering assets and settling liabilities.

This move comes as NAICOM reports that 43 insurance and reinsurance companies have already met the new capital requirements ahead of a July 31 deadline, with eight additional firms currently undergoing a 14-day verification process. The reforms aim to modernize the sector, improve solvency standards, and increase local retention of large commercial risks in aviation, infrastructure, and oil and gas, which were previously ceded to foreign insurers.