President Bola Tinubu has signed the Nigerian Insurance Industry Reform Bill 2025 into law, now known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, presidential spokesman Bayo Onanuga announced on Tuesday.
According to the presidency, the legislation will strengthen Nigeria’s financial sector and advance the country’s goal of achieving a $1 trillion economy. The Act repeals and consolidates outdated insurance laws into a single modern framework, providing for the comprehensive regulation and supervision of all insurance and reinsurance businesses in Nigeria.
Onanuga said the NIIRA 2025 marks a new phase of transparency, innovation, and global competitiveness in the insurance industry, aligning with the Federal Government’s economic vision. Key provisions include:
Higher capital requirements to ensure financial stability of operators
Enforcement of compulsory insurance policies for stronger consumer protection
Digitisation of the insurance market for wider access and efficiency
Zero tolerance for delays in claims settlement
Establishment of policyholder protection funds, particularly in insolvency cases
Broader participation in regional insurance schemes, such as the ECOWAS Brown Card System
The National Insurance Commission (NAICOM) has been tasked with administering and enforcing the Act’s provisions to unlock the industry’s potential and expand insurance penetration nationwide.
The reforms are expected to attract fresh investments, boost public trust, and position Nigeria as a leading insurance hub in Africa.
