President Bola Ahmed Tinubu has assented to the Nigerian Insurance Industry Reform Bill, 2025. Tinubu assented the landmark legislation which is expected to strengthen Nigerian’s financial sector and accelerate the nation’s march toward a US$1 trillion economy, on Tuesday.
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In a statement on Tuesday, Bayo Onanuga, special adviser on information and strategy to Tinubu, said the Nigerian Insurance Industry Reform Act (NIIRA) 2025 repeals and consolidates several outdated insurance laws into a single, modern legal framework.
The new Act provides for comprehensive regulation and supervision of all insurance and reinsurance businesses operating within Nigeria.
“This development reaffirms the administration’s commitment to financial stability, economic development, and inclusive growth,” he said.
“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.”
Onanuga added that 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.
Onanuga further stated that as part of the Renewed Hope Agenda for the Insurance Sector, the Act introduces critical measures such as:
- Stringent capital requirements to ensure the financial soundness of operators.
- Enforcement of compulsory insurance policies to enhance consumer protection.
- Digitisation of the insurance market to improve access and efficiency.
- Zero tolerance for delays in claims settlement.
- Creation of dedicated policyholder protection funds, especially in cases of insolvency.
- Expanded participation in regional insurance schemes, including the ECOWAS Brown Card System.
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 improves insurance penetration across the country.
The National Insurance Commission (NAICOM) was established in 1997 by the National Insurance Commission Act 1997 with responsibility for ensuring the effective administration, supervision, regulation and control of insurance business in Nigeria and protection of insurance policyholders, beneficiaries and third parties to insurance contracts.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
