President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Bill, 2025 into law, marking a significant step toward transforming the financial services sector and boosting investor confidence in the Nigerian economy.
Now known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, the new law repeals and consolidates several outdated pieces of legislation governing insurance in the country.
The Act introduces a unified legal framework to regulate and supervise all insurance and reinsurance operations in Nigeria.
According to a statement signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the move aligns with Tinubu’s economic reform drive and the ambition of achieving a $1 trillion economy.
The Act is also in line with the Renewed Hope Agenda for the insurance sector.
Key provisions in the law include the enforcement of stricter capital requirements for insurance operators, mandatory insurance policies for enhanced consumer protection, digitisation of insurance processes to increase access and efficiency, and the establishment of policyholder protection funds for cases of insolvency.
The Act also mandates the National Insurance Commission (NAICOM) to fully implement the law’s provisions and improve insurance penetration nationwide.
“With this new legislation, Nigeria’s insurance sector is set for a new era of transparency, innovation, and competitiveness. It reflects this administration’s firm commitment to economic development and inclusive financial growth,” Onanuga stated.
The NIIRA 2025 also introduces strict timelines for claims settlements and pushes for broader participation in regional insurance frameworks like the ECOWAS Brown Card System.
