President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law, marking a significant milestone in the administration’s push toward achieving a $1 trillion economy. The law introduces major reforms aimed at modernizing Nigeria’s insurance landscape, enhancing consumer protection, and promoting economic growth. According to Presidential Adviser Bayo Onanuga, the Act underlines Tinubu’s commitment to financial stability, inclusive growth, and a resilient economy.
The NIIRA 2025 empowers the National Insurance Commission (NAICOM) with expanded regulatory authority over all insurance and reinsurance operations in Nigeria. The law mandates stricter capital requirements for operators, enforces compulsory insurance coverage, and emphasizes digital transformation. It also introduces tighter claims settlement enforcement and mandates the creation of policyholder protection funds to safeguard consumers in the event of insurer insolvency.
Experts predict that the implementation of NIIRA will attract substantial domestic and foreign investment into the insurance sector. By tightening regulation and improving transparency, the reforms aim to boost trust and participation in the industry. Analysts also see the law as a move to position Nigeria as a leading insurance hub in Africa, especially with provisions encouraging regional integration through mechanisms like the ECOWAS Brown Card System.
One of the Act’s key features is its push for digitization within the insurance sector, which is expected to expand access, reduce inefficiencies, and foster innovation. Mandatory insurance policies will ensure broader coverage for individuals and businesses alike, especially those in underserved communities. This digital focus aligns with the federal government’s broader economic strategy under the “Renewed Hope Agenda.”
With the NIIRA 2025 now law, stakeholders across the financial and insurance sectors are preparing for a period of adjustment, compliance, and implementation. The law is expected to reshape operations across the industry, making it more competitive and resilient. As the reforms take effect, they are poised to play a critical role in Nigeria’s journey toward long-term economic transformation and stability.
Source: Nairametrics