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The National Insurance Commission (NAICOM) has revoked the operating licence of Nigeria Reinsurance Corporation after the company failed to meet the statutory Minimum Capital Requirement (MCR), marking a significant enforcement action under Nigeria’s insurance sector recapitalisation programme.
The insurance regulator also appointed Senior Advocate of Nigeria, Dr. Muiz Banire, as the receiver and provisional liquidator to oversee the winding-up of the company’s affairs.
According to a notice dated August 4, 2026, Banire’s appointment became effective on August 3, following NAICOM’s cancellation of Nigeria Reinsurance Corporation’s certificate of registration.
The notice explained that the regulatory action was taken after the reinsurer failed to comply with the prescribed minimum capital requirement applicable to its licence category within the stipulated timeline, in line with the provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and other relevant laws, regulations, and regulatory guidelines.
As receiver and provisional liquidator, Banire has been empowered to take immediate control of the company’s assets, recover and secure all properties belonging to the corporation, verify and settle liabilities in accordance with the law, liaise with NAICOM throughout the liquidation process, and submit periodic reports to the Commission.
He further directed banks, financial institutions, insurance policyholders, creditors, and members of the public to refrain from acting on any instructions relating to Nigeria Reinsurance Corporation unless such directives are issued by him or individuals expressly authorised to act on his behalf.
Banire disclosed that all bank accounts belonging to the company have been frozen with immediate effect as part of the liquidation process, warning that any unauthorised transactions involving the insurer would be carried out at the risk of the parties concerned.
He emphasised that only instructions bearing his official seal and signature as Receiver and Provisional Liquidator, or those issued by duly authorised representatives, would be recognised during the administration of the company’s liquidation.
“Members of the general public, banks and financial institutions in Nigeria are hereby informed that no financial transactions should be conducted pursuant to any instruction from anyone except those that I issue as the Receiver/Provisional Liquidator,” the notice stated.
The regulatory action underscores NAICOM’s commitment to enforcing compliance with the insurance industry’s recapitalisation framework, which is designed to strengthen the financial resilience of insurers and reinsurers, improve policyholder protection, and enhance the overall stability of Nigeria’s insurance sector.
The liquidation process is expected to include the recovery and realisation of the company’s assets, verification of outstanding claims and liabilities, settlement of eligible obligations, and the orderly winding up of the corporation’s operations in accordance with the provisions of the NIIRA 2025.
NAICOM advised policyholders, financial institutions, creditors, and other stakeholders that all future dealings concerning Nigeria Reinsurance Corporation must be conducted exclusively through the Receiver and Provisional Liquidator until the liquidation exercise is completed.
Implications for Nigeria’s insurance sector
The revocation reflects NAICOM’s increasingly stringent enforcement of recapitalisation requirements introduced under the Nigerian Insurance Industry Reform Act 2025. Industry observers say the move reinforces the Commission’s determination to ensure that only adequately capitalised operators remain in the market, thereby promoting stronger corporate governance, improved risk absorption capacity, and greater confidence in Nigeria’s insurance and reinsurance industry.
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