President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Bill 2025 into law, marking a significant step toward strengthening the nation’s financial sector and boosting progress toward a $1 trillion economy.
The Nigerian Insurance Industry Reform Act (NIIRA) 2025 repeals and merges several outdated insurance laws into one modern framework, providing comprehensive regulation and supervision of all insurance and reinsurance businesses operating in Nigeria.
According to the Presidency, this development reflects the administration’s commitment to financial stability, economic development, and inclusive growth. “The NIIRA Act 2025 ushers in a new era of transparency, innovation, and global competitiveness for the insurance industry,” the statement said.
The new law aligns with the Federal Government’s vision of achieving a $1 trillion economy and introduces key measures under the Renewed Hope Agenda for the Insurance Sector:
1. Stringent capital requirements to ensure the financial soundness of operators;
2. Enforcement of compulsory insurance policies to enhance consumer protection;
3. Digitisation of the insurance market to improve access and efficiency;
4. Zero tolerance for delays in claims settlement;
5. Creation of dedicated policyholder protection funds, especially in cases of insolvency;
6. Expanded participation in regional insurance schemes, including the ECOWAS Brown Card System.
The National Insurance Commission (NAICOM) has been tasked with administering and implementing the NIIRA 2025 in a way that maximises the industry’s potential and increases insurance penetration nationwide.
Industry analysts believe the reform will drive new investments, improve consumer confidence, and establish Nigeria as a leading insurance hub in Africa. “This Act provides the foundation for sustainable growth in the insurance sector, which is essential for our economic transformation,” a government official noted.
The law is expected to foster greater trust in the insurance market and expand coverage for individuals and businesses across the country.