President Bola Tinubu has signed the Nigerian Insurance Industry Reform Bill 2025 into law, presidential spokesperson Bayo Onanuga announced on Tuesday.
Now known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, the new legislation is designed to strengthen the country’s financial sector and support Nigeria’s ambition to become a $1 trillion economy.
According to the Presidency, the Act repeals and consolidates several outdated insurance statutes into a single, modern legal framework. “The new Act provides for comprehensive regulation and supervision of all insurance and reinsurance activities within Nigeria,” Onanuga stated.
“The NIIRA 2025 ushers in a new era of transparency, innovation, and global competitiveness for Nigeria’s insurance sector. It aligns with the Federal Government’s strategic vision of a $1 trillion economy,” he added.
Key provisions of the new law include:
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Stricter capital requirements to ensure the financial stability of operators;
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Mandatory enforcement of compulsory insurance policies to enhance consumer protection;
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Digitisation of the insurance market to increase accessibility and operational efficiency;
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Zero tolerance for delays in claims settlement;
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Establishment of dedicated policyholder protection funds, particularly for insolvency cases; and
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Broader participation in regional insurance schemes such as the ECOWAS Brown Card System.
The National Insurance Commission (NAICOM) has been charged with administering and implementing the Act’s provisions to unlock the full potential of the insurance sector and drive deeper insurance penetration across Nigeria.
The Presidency noted that the reforms introduced by NIIRA 2025 are expected to attract new investments, restore consumer confidence, and establish Nigeria as a leading insurance hub in Africa.