• New legislation targets $1trillion economy
By Egena Sunday Ode
Aiming to transform the financial sector and achieve Nigeria’s ambition of $1 trillion economy ambition,
President Bola Tinubu Tuesday signed the Nigerian Insurance Industry Reform Bill, 2025 into law.
Now known as the Nigerian Insurance Industry Reform Act (NIIRA), 2025, the bill repeals and consolidates multiple obsolete insurance laws into a single, forward-looking framework.
Moreover, it introduces a regulatory and supervisory regime for insurance and reinsurance businesses operating in the country.
The law has set the stage for a reformed insurance landscape characterised by greater transparency, innovation, and global competitiveness.
It is also expected to deepen insurance penetration, attract fresh investments, and strengthen consumer confidence in the sector.
Among the key reforms introduced by the NIIRA 2025 are:
Stricter capital requirements to ensure the financial health and solvency of insurance operators;
Mandatory enforcement of key insurance policies to enhance consumer protection;
Digitisation of insurance processes to expand access and drive operational efficiency;
A zero-tolerance stance on delayed claims settlement, reinforcing trust and accountability;
Establishment of policyholder protection funds, especially in the event of insolvency;
Deeper integration into regional schemes, including the ECOWAS Brown Card system.
The National Insurance Commission (NAICOM) is empowered to implement the provisions of the Act and ensure full compliance across the industry.
It is expected to play a pivotal role in unlocking the sector’s untapped potential and fostering a more inclusive insurance culture nationwide.
