President Bola Ahmed Tinubu has signed into law the Nigerian Insurance Industry Reform Bill, 2025, marking a major milestone in the administration’s push to reposition the country’s financial services sector and drive progress toward a $1 trillion economy.
Now known as the Nigerian Insurance Industry Reform Act (NIIRA), 2025, the legislation consolidates and repeals outdated insurance laws, ushering in a modern regulatory framework designed to promote transparency, innovation, and global competitiveness in Nigeria’s insurance industry.
In a statement issued on Tuesday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the Presidency described the move as a bold step toward transforming the insurance landscape and attracting major investments into the sector.
According to Onanuga, the new law is expected to deepen insurance penetration, enhance consumer confidence, and position Nigeria as a leading insurance hub in Africa.
“This law signals the administration’s firm commitment to financial stability, economic growth, and inclusive development in line with President Tinubu’s Renewed Hope Agenda,” he stated.
Key provisions of the NIIRA 2025 include:
Stricter capital requirements to ensure the solvency and resilience of insurance firms;
Mandatory enforcement of key insurance policies to strengthen consumer protection;
Digitisation of insurance processes to expand access and improve efficiency;
Zero tolerance for delayed claims settlements, reinforcing trust and accountability;
Creation of policyholder protection funds, particularly for cases of insolvency;
Integration into regional insurance frameworks, such as the ECOWAS Brown Card scheme.
The National Insurance Commission (NAICOM) has been empowered to implement and enforce the provisions of the Act across the industry, playing a central role in unlocking the sector’s vast potential.
With the new law in place, stakeholders say Nigeria’s insurance sector is better positioned to become a key driver of national development and a magnet for foreign direct investment.
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