A fresh impetus for growth in the insurance industry and the entire financial sector has emerged with the President’s assent to the Nigerian Insurance Industry Reform Bill, 2025.
The law, described as a “landmark legislation,” is expected to strengthen Nigeria’s financial sector and accelerate the nation’s march toward a $1 trillion economy. The bill has been in development for up to a decade
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“The Nigerian Insurance Industry Reform Act (NIIRA) 2025 repeals and consolidates several outdated insurance laws into a single, modern legal framework. The new Act provides for comprehensive regulation and supervision of all insurance and reinsurance businesses operating within Nigeria”, stated a press statement from the presidency announcing the signing of the law by President Bola Ahmed Tinubu.
The Press Release further reads: “This development 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.”
Highlights of the legislation include,
1. Stringent capital requirements to ensure the financial soundness of operators.
2. Enforcement of compulsory insurance policies to enhance consumer protection;
3. Digitization of the insurance market to improve access and efficiency.
4. Zero tolerance for delays in claims settlement.
5. Creation of dedicated policyholder protection funds, especially in cases of insolvency.
6. Expanded participation in regional insurance schemes, including the ECOWAS Brown Card System.
The industry regulator, 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 catalyze new investments, boost consumer confidence, and position Nigeria as a leading insurance hub in Africa,” concludes the press release signed Tuesday by Mr. Bayo Onanuga, the Special Adviser (Information and Strategy) to the President.
