President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Bill, 2025 into law—marking a major milestone in the administration’s drive to modernise Nigeria’s financial sector and advance the goal of building a $1 trillion economy.
The new legislation, now cited as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, repeals and consolidates outdated insurance laws into a single, robust legal framework. It introduces far-reaching reforms aimed at enhancing regulation, transparency, and innovation across the insurance and reinsurance sectors.
According to a statement from the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the NIIRA 2025 supports the administration’s Renewed Hope Agenda for the insurance sector and reflects its broader commitment to financial stability, economic growth, and inclusive development.
Key provisions of the Act include:
-
Stricter capital requirements to ensure operator solvency;
-
Mandatory enforcement of compulsory insurance policies;
-
Digitisation of insurance operations to improve access and efficiency;
-
Swift claims settlement with zero tolerance for delays;
-
Establishment of policyholder protection funds, particularly in cases of insolvency;
-
Broadened participation in regional schemes such as the ECOWAS Brown Card System.
The National Insurance Commission (NAICOM) has been tasked with implementing the NIIRA 2025 to unlock the sector’s full potential and improve insurance penetration nationwide.
The Act is expected to attract fresh investments, enhance consumer confidence, and position Nigeria as a leading insurance hub in Africa.
