President Bola Tinubu has signed a new law, the Nigerian Insurance Industry Reform Act (NIIRA) 2025, in a significant step toward transforming the country’s financial sector.
The legislation is expected to play a crucial role in the government’s pursuit of a $1 trillion economy.
According to a press statement from Bayo Onanuga, the Special Adviser to the President on Information and Strategy, the NIIRA 2025 replaces several outdated insurance laws with a single, comprehensive legal framework.
This new Act will provide detailed regulation and supervision of all insurance and reinsurance companies operating in Nigeria.
The new law, a key component of the administration’s “Renewed Hope Agenda” for the insurance sector, introduces several critical measures.
These include stricter capital requirements for operators to ensure their financial stability and enforcing compulsory insurance policies to better protect consumers.
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The Act also aims to modernise the industry through digitalisation, which is intended to improve access and efficiency.
Other key provisions of the NIIRA 2025 are a zero-tolerance policy for delayed claims settlements, the establishment of dedicated funds to protect policyholders in the event of a company’s insolvency and expanded participation in regional insurance programs, such as the ECOWAS Brown Card System.
The National Insurance Commission (NAICOM) has been given the mandate to implement the provisions of the new law.
The goal is to unlock the industry’s full potential and significantly increase the number of Nigerians with insurance coverage.
The government anticipates that this reform will attract new investments, boost consumer confidence, and help establish Nigeria as a leading insurance hub in Africa.
