Major Shake-Up In Insurance Sector As NAICOM Revokes Nigeria Reinsurance Licence

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.

Following the licence withdrawal, the insurance regulator appointed Senior Advocate of Nigeria (SAN), Dr. Muiz Banire, as Receiver and Provisional Liquidator to oversee the corporation’s affairs and supervise its winding-up process.

According to a public notice issued by Banire on August 4, the appointment took effect on August 3, 2026, immediately after NAICOM cancelled the company’s certificate of registration.

The commission said the action was taken under the provisions of the Nigerian Insurance Industry Reform Act 2025 and other applicable laws, following the corporation’s failure to comply with the minimum capital threshold required for its category of business.

The capital requirement is designed to ensure that insurance and reinsurance companies maintain sufficient financial strength to meet their obligations to policyholders, creditors and other stakeholders.

As Receiver and Provisional Liquidator, Banire has been empowered to identify, recover, secure and take possession of all assets belonging to Nigeria Reinsurance Corporation. He will also verify and settle the company’s liabilities, work with NAICOM throughout the liquidation process and submit periodic reports to the regulator.

The liquidation exercise will include the recovery and disposal of assets, verification of claims and liabilities, and the orderly closure of the corporation’s operations in accordance with the law.

Banire also announced the immediate freezing of all bank accounts belonging to Nigeria Reinsurance Corporation pending further directives from his office.

He warned banks, financial institutions, policyholders and members of the public not to process or act on instructions relating to the company unless they originate from him or persons expressly authorised by him.

The receiver cautioned that any unauthorised transaction involving the company would be undertaken entirely at the risk of those involved, adding that only directives issued under his official seal as Receiver and Provisional Liquidator would be recognised throughout the liquidation process.

The notice serves as formal notification to creditors, policyholders, financial institutions and other stakeholders that all future dealings concerning Nigeria Reinsurance Corporation must be conducted exclusively through the Receiver and Provisional Liquidator.