President Bola Ahmed Tinubu has officially signed into law the Nigerian Insurance Industry Reform Bill, 2025, marking a significant step toward modernizing Nigeria’s insurance sector and driving the nation’s ambition to become a $1 trillion economy.
The newly enacted law, now known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, replaces outdated insurance regulations with a comprehensive and updated legal framework that governs all insurance and reinsurance activities across Nigeria.
According to a statement from the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the legislation is a critical part of the administration’s Renewed Hope Agenda, which aims to transform the financial sector and promote sustainable economic growth.
“This landmark reform demonstrates the government’s dedication to enhancing financial stability, fostering economic development, and encouraging inclusive growth across Nigeria,” the statement said.
NIIRA 2025 introduces extensive reforms designed to boost transparency, innovation, and competitiveness within the insurance industry.
Key highlights include stricter capital requirements for insurers to ensure financial strength, mandatory insurance policies to protect consumers, and the digitization of insurance services to improve accessibility and efficiency.
The Act also sets strict deadlines for claims settlements and requires the establishment of dedicated policyholder protection funds to safeguard clients in cases of insurer insolvency.
Furthermore, it expands Nigeria’s involvement in regional insurance initiatives, including the ECOWAS Brown Card System.
The National Insurance Commission (NAICOM) will oversee the implementation and enforcement of the Act, spearheading efforts to increase insurance penetration, enhance industry standards, and attract new investments.
With this reform, Nigeria is positioned to become a leading insurance hub in Africa, spurring job creation and supporting the broader goal of achieving a $1 trillion economy.
President Tinubu’s approval of the NIIRA 2025 is among several bold initiatives aimed at modernizing the country’s financial infrastructure and reinforcing regulatory frameworks to drive inclusive economic progress.
