—– Says it will drive financial sector transformation.
President Bola Ahmed Tinubu on Tuesday, 5th August, 2025 at the State House, Abuja, signed the Nigerian Insurance Industry Reform Bill, 2025 into Law and described the Act as a landmark legislation to strengthen Nigeria’s financial sector so as to accelerate the nation’s march towards 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The Nigerian Insurance Industry Reform Act ( NIIRA ) 2025 repeals and consolidates several outdated Insurance laws into a single, modern legal framework.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 Act provides for comprehensive regulation and supervision of all Insurance and Reinsurance businesses operating in Nigeria.
This development reaffirmed the administration’s commitment to financial stability, economic development, and inclusive growth. The NIIRA Act 2025 ushers in a new transparency, innovation, and global competitiveness for Insurance Industry. It aligns with Federal Government’s vision of achieving a $ 1 trillion economy.
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; *2. Enforcement of Compulsory Insurance Policies to enhance consumer protection; *3. Digitalisation of the insurance market to improve access and efficiency; *4. Zero tolerance for delayed in claims settlement; *5. Creation of dedicated policy holder protection funds, especially in cases of Insolvency; *6. Expanded participation in regional insurance schemes including the ECOWAS Brown and 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 improved insurance penetration across the country.
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
