Nigerian insurers struggle to comply with the minimum capital requirements

Nigerian insurance companies have asked the market regulator to extend the deadline of complying with the new minimum capital requirements, already set at June 30, 2020. According to some media reports, the desired extension would vary between 3 and 5 years.

Insurers find it difficult to increase their capital and attract investors. In fact, the proposed regulatory requirements have not been followed by supportive measures to improve both finance and investments.

In the event that this extension is not granted, several companies would have to cede their shares to foreign investors in order to comply with the imposed requirements.

Read also:

• Deadline extension of capital increase for Nigerian insurers
• Nigerian insurance market