President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Bill, 2025 into law, marking a significant milestone in the transformation of Nigeria’s financial services sector. The newly enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025 is designed to modernize outdated regulations, enhance industry transparency, and position Nigeria’s economy for sustained growth.
The NIIRA 2025 consolidates existing insurance laws into a single, comprehensive framework, providing robust guidelines for the regulation and supervision of insurance and reinsurance businesses across the country. This strategic reform aligns with President Tinubu’s vision of achieving a $1 trillion economy, as outlined in his Renewed Hope Agenda.
Key Provisions of the NIIRA 2025 include:
Stricter capital requirements to strengthen the financial stability of insurance firms.
Mandatory enforcement of key insurance policies to boost consumer protection.
Full digitization of the insurance sector to enhance service delivery and market access.
A no-delay policy on claims settlements to build public trust.
Establishment of policyholder protection funds to safeguard consumers in cases of company insolvency.
Enhanced participation in regional insurance initiatives like the ECOWAS Brown Card Scheme.
The National Insurance Commission (NAICOM) has been tasked with driving the implementation of the Act, ensuring that the reforms translate into deeper insurance penetration and greater investor confidence.
With these reforms, Nigeria is set to attract new investments into the insurance space, foster innovation, and establish itself as a leading insurance hub in Africa.
