By Anthony Otaru and Cross Udo, Abuja
In a move to deepen financial sector reforms and energise Nigeria’s economic transformation agenda, President Bola Tinubu has signed into law the Nigerian Insurance Industry Reform Act (NIIRA) 2025, a sweeping legislation aimed at modernising the insurance landscape and aligning it with Nigeria’s $1 trillion economy target.
The NIIRA 2025 repeals and consolidates several outdated laws governing insurance and reinsurance, creating a unified legal framework that enhances regulation, transparency, and competitiveness within the industry.
Presidential spokesman, Bayo Onanuga, who confirmed the assent on Tuesday, described the new law as a critical step in strengthening Nigeria’s financial system and unlocking new streams of capital.
“This Act marks a new era for the Nigerian insurance industry — one defined by innovation, consumer protection, and global competitiveness. It is a pillar in our drive to build a $1 trillion economy,” Onanuga stated.
Under the NIIRA 2025, key reforms include stringent capital requirements to ensure the financial soundness of operators; compulsory insurance enforcement to widen coverage and protect consumers; and digitisation of insurance operations to enhance access, efficiency, and transparency.
Others are zero tolerance for claims delay, protecting policyholders’ rights; creation of policyholder protection funds, especially for insolvency situations; and integration with regional schemes, such as the ECOWAS Brown Card System.
The National Insurance Commission (NAICOM) has been mandated to fully implement the provisions of the Act, to improve insurance penetration and unlock billions in new investments across the sector.
*New Act targets investment inflow, consumer protection, and regional integration
According to the presidency, the far-reaching impact of the legislation is expected to restore confidence among stakeholders, boost consumer trust, and position Nigeria as a regional insurance powerhouse.
“This is more than a legal update. It is a strategic economic tool to attract foreign direct investment, enhance risk management across sectors, and deepen financial inclusion,” Onanuga added.
The NIIRA 2025 is one of the significant policy reforms under President Tinubu’s Renewed Hope Agenda, underscoring his administration’s push to consolidate Nigeria’s macroeconomic stability and grow the financial services sector into a global force.
