Tuesday August 5, 2025
By TheNewsDESK |
Nigeria’s President Bola Ahmed Tinubu has signed into law the Nigerian Insurance Industry Reform Bill, 2025, a major legislative milestone aimed at overhauling the nation’s insurance sector and accelerating Nigeria’s progress toward a $1 trillion economy.
The new law, now known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, repeals and consolidates outdated insurance legislation into a single, modern framework.
It establishes comprehensive regulation and supervision of all insurance and reinsurance operations across the country.
In a statement issued Tuesday, August 5, by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the landmark legislation was described as a key component of President Tinubu’s Renewed Hope Agenda for financial sector transformation.
“This development reaffirms the administration’s commitment to financial stability, economic development, and inclusive growth,” the statement said.
The NIIRA 2025 ushers in a new era of transparency, innovation, and global competitiveness in the Nigerian insurance landscape.
It introduces wide-ranging reforms designed to strengthen investor confidence, protect consumers, and expand industry reach.
Key provisions of the Act include stringent capital requirements for insurance firms to guarantee financial soundness, enforcement of compulsory insurance policies for enhanced consumer protection, and the digitisation of the insurance market to boost access and operational efficiency.
The Act also enforces zero tolerance for delays in claims settlement and mandates the creation of dedicated policyholder protection funds to safeguard customers in the event of insurer insolvency.
Furthermore, it expands Nigeria’s participation in regional insurance schemes such as the ECOWAS Brown Card System.
The National Insurance Commission (NAICOM) has been tasked with administering and implementing the provisions of the Act.
The Commission is expected to drive reforms that will significantly raise insurance penetration, improve industry performance, and unlock new investment opportunities.
With the signing of the NIIRA 2025, Nigeria is poised to reposition itself as a major insurance hub in Africa.
The reform is expected to catalyse sectoral growth, boost job creation, and serve as a strong foundation for achieving the administration’s $1 trillion economy target.
President Tinubu’s assent to the legislation is the latest in a series of bold moves aimed at modernising Nigeria’s financial architecture and promoting inclusive economic development through stronger regulatory frameworks.
