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Nigeria Reinsurance loses operating licence.
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NAICOM cites capital requirement breach.
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Muiz Banire appointed provisional liquidator.
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Move marks first enforcement under NIIRA 2025.
August 5, (THEWILL) — Nigeria Reinsurance Corporation has become the first insurance company to lose its operating licence since the National Insurance Commission concluded the industry’s recapitalisation exercise, signalling that regulators are beginning to enforce the new capital rules introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
NAICOM said it revoked the company’s licence after it failed to meet the statutory minimum capital requirement within the prescribed deadline.
A public notice dated August 4 also confirmed the appointment of Senior Advocate of Nigeria, Muiz Banire, as receiver and provisional liquidator. His appointment took effect on August 3 following the cancellation of the company’s certificate of registration.
Banire has been mandated to take control of Nigeria Reinsurance’s assets, recover outstanding property, verify liabilities and oversee the company’s liquidation in line with NIIRA 2025. He will also submit periodic reports to NAICOM throughout the process.
Banks, financial institutions, policyholders and members of the public have been directed not to honour any instruction relating to the company unless it comes directly from the receiver or someone authorised by him.
All bank accounts belonging to Nigeria Reinsurance have also been frozen pending further directives.
Coming barely days after NAICOM declared the recapitalisation exercise complete, the decision is the clearest sign yet that the commission intends to back its new capital regime with enforcement.
Last week, the regulator announced that 43 insurance and reinsurance companies had successfully met the revised minimum capital requirements introduced under NIIRA 2025, while eight others that submitted compliance documents close to the deadline remained under final verification.
At the time, NAICOM warned that companies unable to satisfy the new requirements would face regulatory action.
That warning has now claimed its first casualty.
For policyholders, the immediate focus will be the liquidation process and how outstanding obligations will be handled.
For the wider insurance industry, the revocation sends an equally clear message that recapitalisation was never just about raising capital.
It was also about determining which companies had the financial strength to remain in business under Nigeria’s new insurance law.
