BY NGOZI ONYEAKUSI

CFI, NAICOM, Olusegun Omosehin

In an effort geared towards promoting insurance penetration among the low-income earners,  the National Insurance Commission (NAICOM) has raised the minimum capital requirement for national microinsurance operators to N3 billion.

The new threshold, outlined in the commission’s 2026 licensing guidelines released on their website, marks a sharp increase from the previous regime, where capital requirements ranged from N40 million for unit operators to N600 million for national players.

Under the revised framework, operators seeking a national micro insurance licence must meet the N3 billion benchmark to operate across 36 states and the Federal Capital Territory (FCT), offering low-premium, simplified insurance products tailored to underserved and informal markets.

According to the commission,  the policy was designed to ensure operators have the financial capacity to meet obligations, particularly claims settlement, while supporting broader financial inclusion goals.

Reacting  to development,  the Chairman of the Nigerian Insurers Association (NIA), Kunle Ahmed, described the move as a necessary step toward building a more resilient and credible micro insurance market.

Ahmed noted that weak capitalisation had limited the ability of operators to scale and build trust, adding that stronger capital buffers would enhance claims paying and improve public confidence.