President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Bill 2025 into law, marking a significant step toward strengthening Nigeria’s financial sector and advancing the country’s goal of achieving a $1 trillion economy.
The landmark legislation was announced in a statement released Tuesday by Bayo Onanuga, the President’s Special Adviser on Information and Strategy, who described the new law as transformative for the nation’s insurance landscape.
The Nigerian Insurance Industry Reform Act (NIIRA) 2025 consolidates and replaces multiple outdated insurance laws with a comprehensive modern legal framework designed to regulate and supervise all insurance and reinsurance operations within Nigeria’s borders.
According to the presidency, the new legislation demonstrates the administration’s unwavering commitment to financial stability, economic development, and inclusive growth across all sectors of the economy.
“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,” the statement explained.
The Act introduces several critical reforms under what the government terms its “Renewed Hope Agenda for the Insurance Sector.” These measures include implementing stringent capital requirements to ensure operators maintain financial soundness and enforcing compulsory insurance policies to enhance consumer protection nationwide.
A major focus of the new law centers on modernizing the industry through digitization initiatives aimed at improving market access and operational efficiency. The legislation also establishes a zero-tolerance policy for delays in claims settlement, addressing a longstanding concern among Nigerian insurance consumers.
To further protect policyholders, the Act creates dedicated protection funds specifically designed to safeguard consumers in cases where insurance companies face insolvency. Additionally, the law expands Nigeria’s participation in regional insurance schemes, including the Economic Community of West African States (ECOWAS) Brown Card System.
The National Insurance Commission (NAICOM) has been tasked with administering and implementing the NIIRA 2025 provisions in a manner that maximizes the industry’s potential and significantly improves insurance penetration across the country.
Government officials expect the comprehensive reforms to catalyze new investments in Nigeria’s insurance sector while boosting consumer confidence in insurance products and services. The legislation is also positioned to establish Nigeria as a leading insurance hub within the African continent.
The signing of this bill represents the latest in a series of economic reforms undertaken by the Tinubu administration as it works toward transforming Nigeria into a trillion-dollar economy. The insurance sector reform aligns with broader efforts to modernize Nigeria’s financial services industry and attract both domestic and international investment.
