President Bola Ahmed Tinubu has assented to the Nigerian Insurance Industry Reform Bill, 2025, a landmark legislation to strengthen Nigeria’s financial sector and accelerate the nation’s march towards a $1 trillion economy.
The Act now provides zero tolerance to delays in claims insurance settlement and support digitisation of the insurance market to improve access and efficiency.
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.
A statement by Mr Bayo Onanuga, Presidential Spokesperson, announcing the assent stated that the development reaffirms the Tinubu led administration’s commitment to financial stability, economic development, and inclusive growth.
Onanuga highlighted that as part of the Renewed Hope Agenda for the Insurance Sector, the Act introduces critical measures such as stringent capital requirements to ensure financial soundness of operators.
The act also make provision for the enforcement of compulsory insurance policies to enhance consumer protection and creates dedicated policyholder protection funds, especially in difficult situations.
It further makes provision for an expanded participation in regional insurance schemes, including the ECOWAS Brown Card System.
According to the Presidential aide, 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.
Outdated insurance laws
The Nigerian Insurance Industry Reform Act (NIIRA) 2025 repeals and consolidates several outdated insurance laws into a single, modern legal framework.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.
With the newly signed 2025 NIIRA Act, the National Insurance Commission (NAICOM) is mandated to administer and implement the provisions of the insurance act in a manner that unlocks the industry’s full potential and significantly improves insurance penetration across the country
