President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Bill, 2025, into law, setting the stage for a major transformation in Nigeria’s financial sector.
In a statement signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the new law, known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, repeals and consolidates outdated insurance laws, establishing a modern framework for the regulation and supervision of all insurance and reinsurance businesses in the country.
According to the Presidency, the Act is designed to strengthen financial stability, foster economic growth, and accelerate the Federal Government’s drive towards a $1 trillion economy.
Under the Renewed Hope Agenda for the insurance sector, the NIIRA introduces several key measures, including:
Higher capital requirements to ensure operators’ financial soundness.
Mandatory enforcement of key insurance policies to protect consumers.
Full digitisation of the insurance market to improve access and efficiency.
Strict timelines for claims settlement.
Establishment of policyholder protection funds for cases of insolvency.
Greater participation in regional insurance schemes such as the ECOWAS Brown Card System.
The National Insurance Commission (NAICOM) will be responsible for implementing the law to improve insurance penetration and attract new investments.
The reforms are expected to enhance transparency, promote innovation, and position Nigeria as a competitive insurance hub in Africa.
Bello Wakili
