The National Insurance Commission (NAICOM) has revoked the operating licence of Nigeria Reinsurance Corporation (NRC) due to its failure to meet the statutory Minimum Capital Requirement (MCR). The decision was announced by Wale Igbintade, a senior official at NAICOM, who also appointed Senior Advocate Dr. Muiz Banire as Receiver/Provisional Liquidator to manage the company’s affairs (thisdaylive.com). The revocation followed a 12-month recapitalisation exercise that concluded in 2026, during which several insurers, including NRC, struggled to meet the required capital thresholds (thecable.ng).
NAICOM cited capital shortfall as the primary reason for the revocation, highlighting the regulatory body’s strict enforcement of financial compliance. The move has raised concerns among industry players, as it underscores the challenges faced by insurers in meeting the new capital requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025. Meanwhile, AIICO Insurance Plc has successfully retained its composite licence without raising additional capital, citing improved quarterly performance as evidence of compliance (realnewsmagazine.net).
The revocation of NRC’s licence marks a significant regulatory action, reflecting NAICOM’s commitment to maintaining financial stability in the insurance sector. As the liquidation process begins, the case serves as a cautionary example for other insurers still in the process of recapitalisation.
