Nigeria Gives Insurers a Year to Boost Capital Fivefold

Nigeria increased capital requirements for insurance businesses fivefold and gave operators a year to comply or risk losing their licenses.

The capital threshold for non-life insurers was raised to 15 billion naira ($9.8 million) from 3 billion naira that of life insurers to 10 billion naira from 2 billion naira and reinsurers to 35 billion naira from 10 billion naira, according to the industry law emailed by the National Insurance Commission, the regulator.

An insurer registered before the commencement of the Insurance Industry Reform Act needs to comply with the rules within 12 months, it said.

‘’A capitalized insurance sector ...