Nigeria’s insurance sector is entering a new phase of capital strength following the introduction of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which mandates higher minimum capital requirements for operators. Beyond regulatory compliance, this wave of recapitalisation is reshaping insurers’ balance sheets, expanding their investment capacity and opening new pathways for stronger, more sustainable investment returns for shareholders and institutional investors alike.
The National Insurance Commission (NAICOM) has consequently set new minimum capital thresholds across the industry: N10 billion for life insurers, N15 billion for non-life insurers, N25 billion for composite insurers and N35 billion for reinsurers. The ongoing recapitalisation exercise is scheduled to conclude on July 30, 2026, giving operators a defined timeline to strengthen their capital base and reposition for growth.
As a result, several insurers have already approached shareholders for capital injections, while others are exploring strategic partnerships, rights issues, and potential mergers to meet the new regulatory thresholds and strengthen their market position.
The recapitalisation drive is expected to increase Investment Capacity with insurers with stronger balance sheets can invest in more substantial and diverse portfolios, potentially generating higher returns.
It will also improve governance and risk management: Enhanced capital requirements promote better governance and risk management practices, reducing the likelihood of insolvency and increasing investor confidence.
To expand insurance penetration: A more robust insurance sector can lead to increased insurance penetration, driving economic growth and creating new investment opportunities.
Looking at key insurance stocks to watch, capital market analysts have said that some insurance stocks that have rallied include: AIICO Insurance, Mutual Benefits Assurance, AXA Mansard Insurance, Linkage Assurance and Cornerstone Insurance.
The commissioner for Insurance/chief executive officer of NAICOM, Segun Omosehin, said the commission’s focus is to build a stronger, more credible insurance market that can protect policyholders and attract long-term investment.
“The recapitalisation and market conduct reforms are designed to ensure that insurance companies are financially sound, well governed and capable of meeting their obligations to policyholders. This will ultimately strengthen confidence in the industry,” Omosehin said.
A senior stockbroker, Tunde Oyediran emphasized that investors who truly understand the dynamics of the capital market must practice patience when it comes to their investments in companies, saying that “those who remain steadfast will likely see significant improvements in their investment portfolios over time.”
He encouraged a long-term perspective, stating, “the key is to stay committed to your company.”
Oyediran also highlighted the substantial untapped potential within the insurance sector, noting that “many Nigerians remain hesitant when it comes to embracing insurance products. This hesitation is a major concern, as effective legislation and enforcement could unlock the industry’s vast capabilities.”
He pointed out that a growing number of insurance firms are now diversifying their operations into various financial sectors, such as asset management and fintech, to solidify and enhance their income streams.
He stated that when the financial performance of these companies improves significantly, the benefits will inevitably extend to their investors in the form of better earnings and attractive dividends.
He mentioned several high-performing stocks in the market, including Custodian Investment Plc, NEM Insurance, Mansard Insurance, and Sunu Assurances, which are currently grabbing the attention of savvy investors seeking growth opportunities.
Investing Smarter Via Insurance Recapitalisation
To capitalize on this opportunity, investors should:
* Monitor insurance stocks and their recapitalisation progress.
* Consider investing in insurers with strong capital positions and growth potential.
* Diversify portfolios to include insurance sector investments.
Money Market
To finance the 2026 budget, the Chief Executive of CFG Advisory, Tilewa Adebajo, has urged the Federal Government to sell off part of its stake in its Joint Venture (JV) assets.
Speaking with journalists during the Finance Correspondents Association of Nigeria (FICAN) 2026 Economic Outlook, the economist warned that Nigeria’s current debt trajectory is unsustainable.
Adebajo who also projected that economic growth could exceed five per cent by the end of the year if urgent fiscal and structural reforms are implemented, said Nigeria’s debt profile, estimated at over $100 billion, poses a serious risk to macroeconomic stability.
Real Estate
The surging cost of house rents across Lagos, Ogun, Abuja, Port Harcourt, Asaba and other major Nigerian cities, amid largely stagnant incomes, is pushing many middle-class Nigerians into severe financial distress and, in some cases, homelessness.
Findings indicate that the cost of renting apartments and renewing leases in Lagos and its neighbouring Ogun communities has risen by more than 200 per cent in the past few years, deepening the housing burden on residents.
Market surveys show that rents for residential flats and small commercial spaces have jumped by over 90 per cent in several Lagos locations, including Lekki, Ajah, Surulere, Festac, Amuwo-Odofin, Apapa and Victoria Island.
Similarly, rents in suburban communities such as Ikotun, Ikorodu, Egbeda, Iyana-Ipaja, Agege, Abule-Egba and Ojodu-Berger have climbed sharply, moving beyond the affordability threshold of lower-income earners.
Maritime
Cargo haulage costs at the Tin Can Island and Apapa seaports in Lagos have dropped by 65.7 per cent, LEADERSHIP can report.
Findings show that the sharp decline is largely due to the introduction of the electronic call-up system, Ètò, operated by Truck Transit Park Limited (TTP), which has significantly improved truck movement and access to the ports.
Maritime experts attributed the reduction in haulage charges to shorter waiting times, faster truck turnaround, and the dismantling of racketeering and illegal checkpoints along port access roads.
