Nigeria: NAICOM Raises Minimum Capital for Microinsurance Firms to ₦3bn

The National Insurance Commission (NAICOM) is set to increase the minimum capital requirement for microinsurance operators to ₦3 billion, marking a significant shift in the regulatory framework governing the segment.

The new threshold, contained in the Nigeria Insurance Industry Reform Act 2025 (NIIRA 2025), replaces the previous tiered capital structure of ₦40 million for unit operators, ₦100 million for state operators, and ₦600 million for national microinsurance firms.

Although the commission had earlier announced revised capital requirements for life insurers (₦10 billion), general insurers (₦15 billion), and reinsurers (₦35 billion), it had not formally disclosed updated thresholds for microinsurance until now. Industry indications suggest the ₦3 billion benchmark will take effect imminently as a uniform requirement across all microinsurance operators.

Strengthening capacity and expanding inclusion

The move is designed to enhance the financial strength of microinsurance providers and support broader, nationwide coverage, particularly among low-income individuals, micro-entrepreneurs, and underserved communities.

By replacing the earlier tiered framework with a single, higher capital base, regulators aim to build more resilient institutions capable of scaling operations and meeting growing demand.

Microinsurance products are typically structured as simple, low-value policies with easy-to-understand terms, tailored to the needs of financially excluded populations. Distribution channels include agents, cooperatives, non-governmental organisations, faith-based institutions, and increasingly, digital and mobile payment platforms.

Regulatory push under NIIRA 2025

The NIIRA 2025 positions microinsurance as a critical tool for deepening financial inclusion and expanding insurance penetration across Nigeria. The Act also mandates increased digitisation, enabling providers to leverage technology to reach remote and underserved populations more effectively.

It further encourages collaboration between regulators and industry stakeholders—including the Central Bank of Nigeria—to develop affordable and accessible insurance solutions.

In addition to microinsurance, the Act provides a framework for the growth of takaful and agricultural insurance, reinforcing the sector’s role in supporting economic resilience.

Driving access through innovation

NAICOM is expected to issue detailed guidelines to support the transition, including provisions for digital distribution through web aggregators and other technology-driven platforms.

Several firms are currently licensed to operate in the segment, including Goxi Micro Insurance Limited, Cassava Micro Insurance, CHI MicroInsurance Limited, and others, all of which are expected to align with the new capital requirements.

The reform signals a stronger regulatory push to reposition microinsurance as a scalable and sustainable segment, capable of delivering inclusive financial protection to millions of Nigerians.