By Adedapo Adesanya

Nigerian insurance and reinsurance companies have commenced efforts to meet fresh recapitalisation announced by the National Insurance Commission (NAICOM) before a July 2026 deadline.

The fresh recapitalisation exercise for insurance and reinsurance firms in Nigeria announced last week puts a minimum capital for life underwriting organisations at N10 billion, non-life at N15 billion, composite firms at N25 billion, and reinsurance companies at N35 billion.

The initiative is part of the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which was recently assented to by President Bola Tinubu.

NAICOM stated that following the enactment of the NIIRA 2025 and assent of Mr Tinubu on July 31, 2025, “the commission hereby notifies all insurance and reinsurance companies of the commencement of the recapitalisation exercise as prescribed by the NIIRA 2025.”

The regulator said the new capital requirements to be introduced would be based on a risk-based model, noting that in line with the provisions of the Act, the new MCR takes effect from the date of Presidential assent, and all operators are required to comply fully within a 12-month period from the effective date.

NAICOM, however, stated that a 12-month period has been provided for insurers and reinsurers to comply with the new MCR as well as the applicable RBC as may be determined, adding that all insurers and reinsurers shall comply with the requirements on or before July 30, 2026.

On guidelines for the exercise, it stated, “The commission shall, in due course, issue comprehensive guidelines and circulars detailing the modalities for the recapitalisation exercise.

“These shall include, but not be limited to: the composition of the MCR, acceptable forms of capital, procedures for capital verification, qualifying assets for MCR purposes, and criteria such as title, ownership, and existence, a standardised template for computation of MCR.”

On the treatment of assets regarding the exercise the agency stated, “For the avoidance of doubt, insurers and reinsurers are hereby informed that encumbered assets, assets without perfected title or ownership, and assets not in the full possession of an insurer/reinsurer shall be inadmissible for the purpose of meeting the MCR.”

It added that assets that exceed prudential thresholds or do not meet the prescribed criteria shall also be deemed inadmissible.

On the verification of the assets, the Commission stated, “All assets for the purpose of the new MCR shall be subject to verification by the Commission or its appointed agents.

“In addition, where, due to the nature or circumstances of an asset, the Commission deems it necessary to undertake further verification beyond the norm, the cost of such non-standard verification shall be borne by the concerned insurer or reinsurer.”

On the issue of new certificates for firms that successfully cross the recapitalisation hurdle, the commission stated, “Upon fulfilment of the new MCR, payment of the requisite fees and confirmation by the Commission, the successful insurance and reinsurance company shall be issued a new licence by the Commission.

“Any company that fails to meet the prescribed MCR within the stipulated time frame shall be subject to liquidation, merger, or any other regulatory resolution action as may be deemed appropriate by the commission.”

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.04 per cent rise on Monday, August 18, with the market capitalisation adding N790 million to close at N2.147 trillion compared with the N2.146 trillion it closed at the preceding session, and the NASD Unlisted Security Index (NSI) growing by 1.33 points to 3,587.76 points from the 3,587.76 points posted last Friday.

During the trading day, the price of Central Securities Clearing System (CSCS) Plc went up by N1.18 to end at N45.00 per unit compared with the preceding session’s N43.82 per unit and Industrial and General Insurance (IGI) Plc expanded by 7 Kobo to trade at 59 Kobo per share versus the previous closing rate of 52 Kobo per share.

On the flip side, Okitipupa Plc dropped N10.60 to settle at N222.70 per unit versus N233.30 per unit, and Lagos Building Investment Company (LBIC) Plc slid by 3 Kobo to quote at N3.05 per share, in contrast to the previous trading day’s value of N3.08 per share.

Yesterday, there was a 1,820.1 per cent surge in the volume of securities to 56.7 million units from 2.95 million units, as there was a 1,046.1 per cent rise in the value of securities traded by investors to N176.3 million from N15.4 million, and the number of deals rose by 17.9 per cent to 33 deals from 28 deals.

IGI Plc ended the day as the most traded stock by volume on a year-to-date basis with 1.2 billion units worth N401.5 million, followed by Impresit Bakolori Plc with 536.9 million units sold for N524.8 million, and Air Liquide Plc with 507.2 million units transacted for N4.2 billion.

Okitipupa Plc finished the trading session as the most active stock by value on a year-to-date basis with 158.7 million units valued at N5.9 billion, trailed by Air Liquide Plc with 507.2 million units worth N4.2 billion, and FrieslandCampina Wamco Nigeria Plc with 44.0 million units traded for N1.9 billion.

By Adedapo Adesanya

The Naira started the fresh week at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on a negative note on Monday as its value depreciated against the United States Dollar.

According to data, the domestic currency weakened against the greenback during the session by N1.04 or 0.07 per cent to close at N1,533.77/$1, in contrast to last Friday’s value of N1,532.73/$1.

However, the local currency appreciated against the Pound Sterling in the official market on Monday by N1.50 to trade at N2,076.89/£1 compared with the preceding session’s N2,078.39/£1 and lost N1.11 against the Euro to close at the rate of N1,791.36/€1 versus N1,790.25/€1.

In the parallel market, the Nigerian Naira maintained stability against the Dollar during the trading session at N1,550/$1.

Notably, the Central Bank of Nigeria (CBN) did not make any direct interventions last week but analysts expect stability for the Naira to continue within the N1,530 – N1,540 per Dollar range, underpinned by robust FX liquidity and an efficient FX market.

A report by Coronation Merchant Bank revealed that total FX inflows rose to $787.50 million last week, up from $732.80 million in the previous week.

Non-bank corporates were the highest contributors, accounting for $227.4 million (28.88 per cent), followed by exporters with $179.6 million (22.81 per cent). The CBN received $171.2 million (21.74 per cent), while foreign portfolio investors (FPIs) brought in $167.4 million (21.26 per cent). Individual sources added $37.3 million (4.73 per cent), and other international sources made up 0.57 percent of total inflows.

Gross external reserves increased by $431.86 million (1.1 per cent) to $40.72 billion as of Wednesday, supported by consistent daily inflows throughout the week.

Support also came as headline inflation also eased for the fourth straight month in July as the National Bureau of Statistics (NBS) reported that inflation eased by 34 basis points to 21.88 per cent year-on-year in July from 22.22 per cent year on year. This continues to make cases for a possible interest rate cut.

Meanwhile, the digital currency market turned bearish as traders hopped on a wave of profit-taking with over $3.5 billion of profit realised over the weekend.

Dogecoin (DOGE) fell by 2.8 per cent to $0.2174, Solana (SOL) lost 1.4 per cent to quote at $179.85, Ethereum (ETH) depreciated by 1.3 per cent to $4,232.60, Bitcoin (BTC) dropped 0.5 per cent to $115,015.11, and Litecoin (LTC) slumped by 0.2 per cent to $116.64.

But, Binance Coin (BNB) rose by 1.4 per cent to $843.33, Ripple (XRP) gained 1.2 per cent to finish at $3.01, and Cardano (ADA) increased by 1.1 per cent to $0.9252, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.