By Majeed Salaam
President Bola Tinubu has signed the Nigerian Insurance Industry Reform Bill, 2025 into law – a move set to overhaul the country’s insurance sector and reposition it as a key driver of Nigeria’s economic ambitions.
The new law, known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, replaces decades-old legislation with a modern, unified legal framework. For industry players, it marks a turning point. For the government, it is another step towards building a $1 trillion economy.
The NIIRA consoliadates several outdated laws and introduces sweeping reforms aimed at strengthening regulation, protecting policyholders, and promoting innovation. At the core of the legislation is a bold vision: to make insurance accessible, trusted, and a pillar of national growth.
Among the key provisions are tougher capital requirements for insurance firms – a move expected to weed out weak operators and restore confidence in the sector. The Act also makes several forms of insurance mandatory and enforces stricter timelines for settling claims. For Nigerians long frustrated by delayed payments, this provision alone could shift public perception.
The NIIRA mandates digitisation of operations across the industry. From product purchase to claims processing, insurers will now be required to operate on modern digital platforms – a strategy aimed at improving reach, especially among the uninsured population.
Policyholders also stand to benefit from the introduction of a dedicated protection fund. In the event of insolvency, the fund will serve as a financial safety net – a feature long missing in Nigeria’s insurance ecosystem.
Another bold step is Nigeria’s deepened participation in regional insurance schemes, including the ECOWAS Brown Card, which facilitates cross-border motor insurance coverage. This move signals the country’s growing ambition to be a key player on the continental stage.
The National Insurance Commission (NAICOM) has been handed the reins to enforce the new Act. It will be responsible for supervising compliance, building trust in the system, and encouraging innovation.
According to Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, the Act is part of President Tinubu’s Renewed Hope Agenda. “It reaffirms the administration’s commitment to economic development, financial inclusion, and global competitiveness,” he stated.
The insurance industry in Nigeria has long been underutilized. With penetration levels below 2%, it remains one of the most untapped segments of the financial system. The hope now is that the NIIRA 2025 will change that – pushing Nigeria closer to its economic targets while securing more lives, livelihoods, and assets.
What lies ahead is implementation. But if the tone from the Presidency is anything to go by, the groundwork for a vibrant and resilient insurance future has just been laid.
