Tinubu Signs Nigerian Insurance Industry Reform Bill 2025 into Law

By Modupe Gbadeyanka

The Nigerian Insurance Industry Reform Bill 2025 has been signed into law by President Bola Tinubu, a statement from his spokesman, Mr Bayo Onanuga, confirmed.

The law is now known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and will strengthen the nation’s financial sector and accelerate the nation’s march toward a $1 trillion economy.

In the notice signed on Tuesday, it was disclosed that the law was created to revolutionise the country’s underwriting industry, which is struggling to capture more space.

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.

The new act introduces stringent capital requirements to ensure the financial soundness of operators, and will enforce compulsory insurance policies to enhance consumer protection.

Further, the law will trigger the digitisation of the insurance market to improve access and efficiency, enforce zero tolerance for delays in claims settlement, create dedicated policyholder protection funds, especially in cases of insolvency, and expand Nigeria’s participation in regional insurance schemes like the ECOWAS Brown Card System.

“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,” the statement noted.

It was disclosed that the act repealed and consolidated several outdated insurance laws into a single, modern legal framework.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,” it added.

The National Insurance Commission (NAICOM) has been mandated to administer and implement the provisions of the NIIRA 2025 to unlock the industry’s full potential and significantly improve insurance penetration across the country.