President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Bill, 2025, into law—a transformative move aimed at overhauling the country’s insurance sector and advancing Nigeria’s vision of becoming a $1 trillion economy.
The development was announced in a statement released Tuesday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga.
Modern Framework for a Modern Economy
The new legislation, now known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, repeals and consolidates multiple outdated insurance laws into a single, modern legal framework. It establishes a more robust system for the regulation and supervision of insurance and reinsurance businesses across Nigeria.
“The NIIRA Act 2025 ushers in a new era of transparency, innovation, and global competitiveness for the insurance industry. It aligns with the Federal Government’s long-term vision of achieving a $1 trillion economy,” the statement read.
Key Reforms Under the NIIRA Act 2025
As part of the Renewed Hope Agenda for the insurance sector, the Act introduces a range of bold reforms designed to drive financial stability, increase investor confidence, and expand insurance penetration nationwide. Key highlights include:
Stricter capital requirements to ensure financial soundness of operators;
Enforcement of compulsory insurance policies for enhanced consumer protection;
Digitisation of the insurance ecosystem to boost accessibility and operational efficiency;
Zero tolerance for delayed claims settlement;
Creation of policyholder protection funds, particularly for cases involving insolvency;
Broader participation in regional schemes, including the ECOWAS Brown Card System.
NAICOM Empowered to Drive Industry Transformation
The National Insurance Commission (NAICOM) has been mandated to administer and enforce the new provisions of the Act. It will lead the implementation strategy, with a focus on unlocking the industry’s full potential and increasing insurance coverage across Nigeria.
“The reform introduced by the NIIRA 2025 is expected to attract new investments, strengthen consumer confidence, and position Nigeria as a leading insurance hub in Africa,” the statement concluded.
The NIIRA Act 2025 marks one of the most comprehensive reforms to Nigeria’s financial sector in recent history—setting the stage for accelerated economic growth and deeper financial inclusion.
