Abuja, Nigeria — In a major step toward achieving a $1 trillion economy, President Bola Ahmed Tinubu has signed into law the Nigerian Insurance Industry Reform Bill, 2025. This landmark legislation, now known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, is set to modernize the nation’s insurance sector and drive significant economic growth.
The new law repeals and consolidates outdated legislation, establishing a single, modern framework for the comprehensive regulation and supervision of all insurance and reinsurance operations in the country.
In a statement issued Tuesday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the legislation was described as a key component of President Tinubu’s Renewed Hope Agenda. “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. The Act introduces wide-ranging reforms designed to strengthen investor confidence, protect consumers, and expand the industry’s reach.
Key provisions of the Act include:
- Stringent Capital Requirements: To guarantee the financial soundness of insurance firms.
- Enhanced Consumer Protection: Enforcing compulsory insurance policies and mandating dedicated policyholder protection funds to safeguard customers in the event of insurer insolvency.
- Zero Tolerance for Claims Delays: Enforcing strict timelines for claims settlement.
- Digitization of the Market: To boost access and operational efficiency.
- Regional Expansion: Expanding Nigeria’s participation in schemes like the ECOWAS Brown Card System.
The National Insurance Commission (NAICOM) has been tasked with the administration and implementation 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 catalyze sectoral growth, boost job creation, and serve as a strong foundation for achieving the administration’s ambitious $1 trillion economy target. This legislation is the latest in a series of bold moves by President Tinubu to modernize Nigeria’s financial architecture.
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