President Bola Tinubu has assented to the Nigerian Insurance Industry Reform Bill, 2025 — a landmark legislation to strengthen Nigeria’s financial sector and accelerate the nation’s march toward a $1 trillion economy.
The Nigerian Insurance Industry Reform Act (NIIRA) 2025 repeals and consolidates several outdated insurance laws into a single, modern legal framework.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.
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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.
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As part of the Renewed Hope Agenda for the insurance sector, the Act introduces critical measures such as:
1. Stringent capital requirements to ensure the financial soundness of operators;
2. Enforcement of compulsory insurance policies to enhance consumer protection;
3. Digitisation 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 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.
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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.
Bayo Onanuga
Special Adviser to the President
(Information & Strategy)
August 5, 2025
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