NIIRA 2025: NAICOM Seeks Legislators’ Backing For MDAs, States’ Compliance
By Sunday Etuka, Abuja
The National Insurance Commission (NAICOM) has sought the support of the lawmakers for the effective implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Commissioner for Insurance, Mr Ayo Omosehin, made the appeal at the Retreat with members of the House of Representatives’ Committee on Insurance and Actuarial Matters in Maiduguri, Borno State.
He said “the retreat offers a unique opportunity to: Deepen understanding of NIIRA 2025’s provisions and implications, strengthen collaboration between legislators, regulators, and industry players, and explore strategic partnerships with state governments in providing appropriate insurance cover for Govt Asset, agriculture, and infrastructure.”
The CFI stated that the theme of the retreat, “Navigating the New Era of Insurance Regulation: Understanding NIIRA 2025”, reflects collective commitment to building a modern, inclusive, and resilient insurance ecosystem.
Noting that the NIIRA 2025 consolidates decades of fragmented legislation into a coherent framework that empowers regulators, protects consumers, and fosters innovation.
He said although the law has been passed, the real work has only just started, therefore, for the Reform Act to succeed the committee must Exercise oversight to ensure that the Ministries, Departments and Agencies (MDAs) of government comply with compulsory insurance, Provide budgetary support, Drive awareness and advocacy in their constituencies, and Facilitate harmonization of state policies with federal frameworks.
“Without your backing, compliance will remain weak, and the promise of this law may not be realised. Let us seize this moment to build a future where insurance is not just a policy document, but a promise of security, resilience, and shared prosperity. Let us align our efforts—legislative, regulatory, and operational—to ensure that NIIRA 2025 delivers on its transformative potential,” he noted.
The NAICOM boss expressed optimism that the new legislation would bring millions of Nigerians into the financial safety net through its financial Inclusion provisions.
He noted that the Act establishes a comprehensive consumer protection framework, prominently featuring Policyholder Protection Fund. This fund, according to him, acts as a vital safety net, ensuring that valid claims are honoured even if an insurer faces insolvency, thereby protecting policyholders from financial loss.
He averred that insurance offers a powerful tool to de-risk agriculture and empower the farmers, noting that statistics have shown that over 1.47 million smallholder farmers have been covered under NIRSAL’s agricultural insurance schemes, with a target of 3.6 million by 2026.
He also noted that in Q2 2025, 250,000 farmers were insured across eight states under federal initiatives.
“Statistics has it that in North Central Nigeria, insured rice farmers recorded 11% higher productivity than their uninsured peers—averaging 20 bags/hectare compared to 18 bags/hectare,” he added.
Mr Omosehin noted Kaduna ginger farmers received payouts under the NAGS-AP scheme after suffering over 90% crop loss, disclosing that livestock and encroachment insurance in Sokoto, Bauchi, Adamawa, and Plateau States are reducing farmer-herder conflicts.
The new legislation, according to him, sets out to: Modernise our frameworks in line with international standards, Safeguards consumers via stronger disclosure, claim handling, and a Consumer Protection Fund, Promote ethical conduct, transparency, and sound market practices through stronger governance and oversight, Strengthened compulsory insurance to protect lives and property, Broaden financial inclusion with microinsurance and Takaful, Strengthened the financial health of insurance companies, and Push digitalisation for greater access, transparency, and trust.
In summary, he said the Act is a chance to shift insurance from being a niche service to being a pillar of Nigeria’s economic stability
While noting that insurance is not just about premiums and claims, the Commissioner said it is about protecting lives, preserving government resources, and building an economy that can withstand shocks.
He stressed that the NIIRA 2025 positions Nigeria’s insurance sector for sustainable growth, enhanced consumer protection, and international competitiveness, therefore, efforts must be collectively committed to the successful realisation of the potentials and benefits of the Act.
He applauded the Borno State Governor, Babagana Zulum, the Executive Governor of Borno State for his administration’s bold strides in rebuilding infrastructure, expanding access to healthcare, and promoting inclusive development.
He said the insurance sector stands ready to partner with his government in deepening risk protection for public assets and supporting agricultural resilience.
He also commended the Chairman of the House Committee on Insurance and Actuarial Matters, Hon. Ahmadu Usman Jaha, for advancing the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and fostering a culture of stakeholder engagement and legislative foresight.
