By Jemimah Wellington, JKNewsMedia Correspondent
PRESIDENT BOLA Tinubu has, on Wednesday, signed into law the Nigerian Insurance Industry Reform Act (NIIRA) 2025, creating a consolidated framework to regulate and supervise all insurance and reinsurance businesses in the country.
The new legislation repeals several outdated statutes, replacing them with a single modern law aimed at driving financial stability, economic growth, and inclusivity.
According to the Presidency, the NIIRA 2025 forms part of the Renewed Hope Agenda for the insurance sector and is designed to accelerate Nigeria’s trajectory towards a $1 trillion economy.
It introduces stringent capital requirements to ensure the financial soundness of operators and mandates enforcement of compulsory insurance policies to strengthen consumer protection.
The Act also provides for the digitisation of the insurance market to improve access and operational efficiency.
It prescribes zero tolerance for delays in claims settlement and establishes dedicated policyholder protection funds, particularly for cases of insolvency.
Provisions further expand Nigeria’s participation in regional insurance initiatives such as the ECOWAS Brown Card System.
The National Insurance Commission (NAICOM) has been tasked with administering and implementing the new law in a manner that unlocks the industry’s full potential and significantly boosts insurance penetration nationwide.
Government officials said the reform will usher in greater transparency, innovation, and competitiveness, aligning the sector with international best practices.
By consolidating regulations and tightening oversight, the NIIRA 2025 is expected to attract new investments, strengthen market discipline, and enhance public trust in insurance services.
The Presidency stated that the legislation represents a decisive step towards transforming Nigeria into a leading insurance hub in Africa, with long-term benefits for both industry stakeholders and policyholders.
