President Bola Tinubu has signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law, setting the stage for a major shake-up in Nigeria’s financial sector.
The new law repeals outdated insurance laws and replaces them with a unified framework to regulate all insurance and reinsurance businesses nationwide.
According to Bayo Onanuga, Special Adviser to the President on Information and Strategy, “The NIIRA Act 2025 ushers in a new era of transparency, innovation, and global competitiveness for the insurance industry.”
Stronger Rules, Safer Consumers
The Act introduces stricter capital requirements to ensure financial stability. Non-life insurers must now hold ₦25bn, up from ₦10bn. Life insurers need ₦15bn, and reinsurers must maintain ₦45bn.
It also enforces compulsory insurance policies to protect consumers and mandates zero tolerance for delayed claims.
“This development reaffirms the administration’s commitment to financial stability, economic development, and inclusive growth,” Onanuga added.
Digitisation will improve access and efficiency, while policyholder protection funds will shield customers from insolvency risks.
NAICOM, Nigeria’s insurance regulator, will implement the Act and drive reforms to deepen insurance penetration and attract fresh investments.
Regional Integration and Global Goals
The law expands Nigeria’s role in regional insurance schemes like the ECOWAS Brown Card System, which ensures third-party motor insurance coverage across West Africa.
The reform aligns with the Federal Government’s ambition to build a $1 trillion economy and position Nigeria as Africa’s insurance powerhouse.
Senator Tokunbo Abiru, who sponsored the bill, said it will “unlock the full potential of Nigeria’s insurance industry.”
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