President Bola Tinubu has assented to the Nigerian Insurance Industry Reform Bill, 2025.
The Nigerian Insurance Industry Reform Act (NIIRA) 2025, seeks to strengthen Nigeria’s financial sector and accelerate the nation’s march towards a 1-trillion dollar economy.
It repeals and consolidates several outdated insurance laws into a single, modern legal framework, providing for comprehensive regulation and supervision of all insurance and re-insurance businesses within Nigeria.
In a statement, the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, notes that the development re-affirms the administration’s commitment to financial stability, economic development, and inclusive growth.
According to the statement, the Act ushers in a new era of transparency, innovation, and global competitiveness for the insurance industry.
The Act equally aligns with the Federal Government’s vision of achieving 1-trillion economy.
The statement says the Act introduces stringent capital requirements to ensure the financial soundness of operators.
Compulsory insurance policies
It seeks enforcement of compulsory insurance policies to enhance consumer protection, digitization of the insurance market to improve access and efficiency, and zero tolerance for delays in claims settlement.
The statement further seeks the creation of dedicated policy-holder protection funds, especially in cases of insolvency, expanded participation in regional insurance schemes, including the ECOWAS Brown Card System.
It explains that the National Insurance Commission, NAICOM, is mandated to administer and implement the provisions of the NIIRA 2025 in a manner that unlocks the industry’s full potential and significantly improves insurance penetration across the country.
The statement adds that the reform introduced by the new law is expected to catalyze new investments, boost consumer confidence, and position Nigeria as a leading insurance hub in Africa.
