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Tinubu Officially Enacts Nigerian Insurance Sector Reform Legislation

Bola Ahmed Tinubu, the President of Nigeria, has given his approval to the Nigerian Insurance Industry Reform Bill, 2025, according to our report. This significant legislation is set to build a new foundation for the insurance sector.

Tinubu Officially Enacts Insurance Sector Reform Law in Nigeria
Tinubu Officially Enacts Insurance Sector Reform Law in Nigeria

Tinubu Officially Enacts Nigerian Insurance Sector Reform Legislation

Nigeria's Insurance Industry Transformed: The NIIRA 2025 Takes Effect

President Bola Ahmed Tinubu has assented to the Nigerian Insurance Industry Reform Bill, 2025, marking a significant milestone in the transformation of the country's insurance sector. The new law, known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, ushers in a new era of transparency, innovation, and global competitiveness.

The NIIRA 2025 introduces key provisions aimed at ensuring financial soundness of insurers, enhancing consumer protection, improving efficiency and access, and fostering regional integration of insurance markets.

Stricter capital requirements for insurance companies are among the reforms, designed to strengthen insurers' financial resilience and reduce the risk of insolvency. The creation of policyholder protection funds provides a safety net in cases of insurer failure, further safeguarding consumers and boosting confidence in the sector.

Digitisation of the insurance market is another significant development, aimed at improving access and efficiency, especially in rural and underserved markets. This move supports broader economic inclusion and positions Nigeria as a potential insurance hub in Africa.

The Act also enforces zero tolerance for delays in claims settlement, a move that is expected to boost consumer confidence and position Nigeria as a leading insurance hub in Africa. Enforcement of compulsory insurance policies enhances consumer protection, while expanded participation in regional insurance schemes such as the ECOWAS Brown Card system fosters regional integration.

The National Insurance Commission (NAICOM) is mandated to administer and implement the provisions of the NIIRA 2025 in a manner that unlocks the industry's full potential and significantly improves insurance penetration across the country. The reforms align with the Federal Government's vision of achieving a $1 trillion economy.

The new Act provides for comprehensive regulation and supervision of all insurance and reinsurance businesses operating within Nigeria. These reforms aim to ensure financial soundness of insurers, enhance consumer protection, improve efficiency and access, and foster regional integration of insurance markets.

For inclusive growth, the Act supports the uptake of insurance among Micro, Small, and Medium Enterprises (MSMEs), encouraging risk management practices that help businesses navigate uncertainties. Enforcing compulsory insurance expands risk coverage to more Nigerians, while faster claims settlement enhances trust and participation. Together, these effects reduce financial vulnerabilities and facilitate broader economic participation across society.

In summary, NIIRA 2025 fosters a more transparent, innovative, and globally competitive insurance sector that underpins Nigeria’s agenda for a $1 trillion economy through enhanced financial stability, economic growth, and inclusive development. The reforms are expected to catalyse new investments, boost consumer confidence, and position Nigeria as a leading insurance hub in Africa.

[1] Nigerian Insurance Industry Reform Act (NIIRA) 2025 [2] Renewed Hope Agenda for the Insurance Sector [3] $1 trillion economy vision [4] National Insurance Commission (NAICOM) [5] ECOWAS Brown Card System

  1. President Bola Ahmed Tinubu, in line with the Renewed Hope Agenda for the Insurance Sector, has given his assent to the Nigerian Insurance Industry Reform Act (NIIRA) 2025, marking a crucial step towards Nigeria's vision of a $1 trillion economy.
  2. The NIIRA 2025 aims to create a more transparent and globally competitive insurance sector in Nigeria, as it ushers in an era of enhanced financial soundness, consumer protection, and regional integration, aligning with the Federal Government's economic plans.
  3. The Act mandates the National Insurance Commission (NAICOM) to administrate and implement the reforms, focusing on the financial soundness of insurers, improved access and efficiency, and fostering integration within regional insurance markets, such as the ECOWAS Brown Card System.
  4. To support inclusive growth, the reforms encourage Micro, Small, and Medium Enterprises (MSMEs) to adopt risk management practices, expanding insurance coverage and reducing financial vulnerabilities across society.
  5. By enforcing compulsory insurance policies and enforcing zero tolerance for delays in claims settlement, the NIIRA 2025 aims to position Nigeria as a leading insurance hub in Africa, attracting new investments, boosting consumer confidence, and catalyzing economic growth within the country.

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