Finance

Nigerian Senate Approves Bill to Increase Insurance Companies' Capital

Nigerian Senate Approves Bill to Increase Insurance Companies' Capital
Thursday, 19 December 2024 16:28

Nigerian lawmakers explained that the increase in the minimum capital for companies in the sector was driven by the depreciation of the naira, rising inflation, and the need to curb capital flight.

On December 17, the Nigerian Senate passed a new bill to overhaul the country's insurance sector. The bill includes a major increase in the minimum capital requirements for insurance and reinsurance companies.

Under the new law, non-life insurance companies will now need a minimum capital of 25 billion naira ($16 million), up from the current 3 billion naira. Life insurance companies will need 15 billion naira, compared to 3 billion before. Reinsurance companies will see their capital requirement rise from 10 billion to 35 billion naira.

The Senate Committee on Banking, Insurance and Other Financial Institutions explained that the capital raise is necessary due to the weakening national currency, rising inflation, and the need to reduce Nigeria's dependence on foreign insurance companies. They also noted the importance of covering new, emerging risks.

Mukhail Abiru (pictured), the Committee Chairman, pointed out that the current laws governing the insurance sector have been in place for over 30 years and are no longer able to meet the industry's modern needs or support innovation. This outdated legal framework has led to inefficiencies that have made it harder for the sector to compete globally, he noted.

The bill will now move to the House of Representatives for approval before being signed into law by President Bola Tinubu.

On the same topic
New card enables African payments without using US or European networks Aims to lower costs, protect financial data, and boost intra-African...
• Burkina Faso-based financial group, Vista Group Holding, has acquired a majority stake in Société Générale Burkina Faso (SGBF).•The move is part of...
• Gabon signs two major financing agreements with Afreximbank totaling over $3.2 billion.• Projects target mining sector transformation, expanded...
• Afreximbank to mobilize up to $1.5 billion for Chad’s private sector development.• Agreement supports key sectors, including agropastoral...
Most Read
01

• Maritime sector faces renewed risks amid military tensions in the Middle East• Blockade fears at S...

Israel-Iran conflict raises new threats for global shipping and oil trade
02

Lebara Group is now bringing its affordable and reliable mobile services to Africa, starting with Ni...

Telecoms: Lebara Enters Nigerian Market with Strong Competitive Ambitions
03

• Google unveils Veo 3, its latest AI tool for ultra-realistic video generation• Experts warn deepfa...

Deepfake Threat Becomes Alarming in Africa as AI Advances Faster Than Laws
04

In a West African financial landscape marked by tighter regulation of the fintech sector, digital fi...

In Five Years, Francophone Africa Will be A Major Force in African Tech –Régis Bamba
05

• Gates Foundation commits $1.6 billion over five years to Gavi.• Bill Gates warns of rising ch...

Gates Foundation Pledges $1.6 Billion to Gavi to Boost Global Child Vaccination
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.