President Bola Tinubu has signed the Nigerian Insurance Industry Reform Bill, 2025 into law — a landmark legislation aimed at transforming the country’s financial services sector and advancing the Federal Government’s goal of building a $1 trillion economy.
The newly enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025 repeals and consolidates outdated insurance laws, creating a unified and modern regulatory framework for insurance and reinsurance businesses operating in Nigeria.
According to a statement issued on Tuesday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the Act reflects the Tinubu administration’s commitment to financial stability, economic development, and inclusive growth.
Described as a catalyst for innovation and competitiveness, the NIIRA 2025 introduces several far-reaching reforms under the Renewed Hope Agenda for the insurance sector, including:
- Stricter capital requirements for insurance companies to ensure financial stability;
- Mandatory insurance policies to bolster consumer protection;
- Digitisation of the insurance market to expand access and efficiency;
- Zero tolerance for delayed claims settlement;
- Creation of dedicated policyholder protection funds, especially for insolvency cases;
- Stronger regional integration, including expanded participation in the ECOWAS Brown Card scheme.
The Act also mandates the National Insurance Commission (NAICOM) to oversee the full implementation of the law and drive efforts to increase insurance penetration nationwide.
Analysts expect the reforms to boost consumer confidence, attract new investments, and position Nigeria as a competitive insurance hub in Africa.