President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Bill, 2025, into law. This new legislation is a significant step toward strengthening Nigeria’s financial sector and driving the country’s economic ambitions.
The new law, now known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, replaces several outdated insurance laws with a single, modern framework. According to a statement from Bayo Onanuga, the President’s Special Adviser on Information & Strategy, the Act aims to provide comprehensive regulation and supervision for all insurance and reinsurance businesses in Nigeria.
This move aligns with the administration’s commitment to financial stability, economic development, and inclusive growth, ushering in a new era of transparency, innovation, and global competitiveness for the insurance industry.
Key Reforms Under the New Act
The NIIRA Act 2025, a core part of the President’s Renewed Hope Agenda for the insurance sector, introduces several critical measures:
- Stricter capital requirements to ensure the financial health of insurance companies.
- Enforcement of compulsory insurance policies to better protect consumers.
- Digitization of the insurance market to improve access and efficiency.
- A zero-tolerance policy for delays in settling claims.
- The creation of dedicated policyholder protection funds to safeguard consumers in cases of company insolvency.
- Expanded participation in regional insurance schemes, such as the ECOWAS Brown Card System.
The National Insurance Commission (NAICOM) has been mandated to implement the new law, with the goal of unlocking the industry’s full potential and significantly increasing insurance penetration nationwide. The reforms are expected to attract new investments, boost consumer confidence, and help position Nigeria as a leading insurance hub in Africa.
