President Bola Ahmed Tinubu has signed into law the Nigerian Insurance Industry Reform Bill, 2025 a landmark legislation aimed at strengthening the nation’s financial sector and propelling Nigeria toward its $1 trillion economic target.

The bill, now known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, was signed into law to consolidate and modernise Nigeria’s insurance regulatory framework.

According to a statement issued by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the Act repeals several outdated laws and replaces them with a comprehensive legal structure for regulating and supervising insurance and reinsurance businesses across the country.

“This development reaffirms the administration’s commitment to financial stability, economic development, and inclusive growth,” Onanuga stated.

The NIIRA 2025 is positioned to usher in a new era of transparency, innovation, and global competitiveness within the insurance industry. It aligns with the Federal Government’s broader economic strategy under the Renewed Hope Agenda and its vision to build a $1 trillion economy.

Key provisions of the Act include:

1. Stricter capital requirements to ensure the financial soundness of insurance operators;
2. Mandatory enforcement of compulsory insurance policies to enhance consumer protection;
3. Digitisation of the insurance market to improve accessibility and operational efficiency;
4. Zero tolerance for delays in claims settlement, aimed at building consumer trust;
5. Establishment of policyholder protection funds, especially to safeguard clients in cases of insolvency;
6. Expansion of Nigeria’s participation in regional insurance schemes, such as the ECOWAS Brown Card System.

The National Insurance Commission (NAICOM) has been tasked with the implementation and enforcement of the Act’s provisions. It is expected to play a central role in unlocking the full potential of the insurance sector and boosting penetration across the country.