President Bola Tinubu has signed into law the Nigerian Insurance Industry Reform Bill, 2025 to drive the transformation of the nation’s insurance sector.
The landmark legislation is also intended to strengthen Nigeria’s financial sector and accelerate the nation’s march toward a $1 trillion economy.
Bayo Onanuga, Special Adviser to the President on Information & Strategy, disclosed the development in a statement on Tuesday.
The Nigerian Insurance Industry Reform Act (NIIRA) 2025 repeals and consolidates several outdated insurance laws into a single, modern legal framework. However, the new Act provides for comprehensive regulation and supervision of all insurance and reinsurance businesses operating within Nigeria.
This reaffirms the administration’s commitment to financial stability, economic development, and inclusive growth.
“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 vision of achieving a $1 trillion economy,” the statement said.
it added that as part of the Renewed Hope Agenda for the Insurance Sector, the Act introduces critical measures such as: Stringent capital requirements to ensure the financial soundness of operators; Enforcement of compulsory insurance policies to enhance consumer protection; Digitisation of the insurance market to improve access and efficiency; Zero tolerance for delays in claims settlement; Creation of dedicated policyholder protection funds, especially in cases of insolvency; Expanded participation in regional insurance schemes, including the ECOWAS Brown Card System.
“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 reform introduced by the new law is expected to catalyse new investments, boost consumer confidence, and position Nigeria as a leading insurance hub in Africa,” the statement concluded.
