The National Insurance Commission (NAICOM) has expressed deep appreciation to President Bola Tinubu for officially signing into law the Nigerian Insurance Industry Reform Act, 2025 (NIIRA 2025).
In a statement released by the Commission, NAICOM described the new legislation as a transformational milestone poised to reshape Nigeria’s insurance landscape. According to the commission, NIIRA 2025 introduces a robust regulatory framework designed to boost insurance penetration, strengthen policyholder protection, attract fresh investment, and enhance the sector’s contribution to national economic growth.
“This new law marks a turning point for the Nigerian insurance industry,” NAICOM stated. “It provides a modernised structure that aligns with global standards and supports Nigeria’s ambition of building a trillion-dollar economy.”
NAICOM also commended the National Assembly for its role in the legislative process—especially Senator Mukhail Abiru, Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, who sponsored the bill. The commission equally acknowledged the efforts of key government figures, including the Coordinating Minister of the Economy and Minister of Finance, Mr. Wale Edun; the Minister of State for Finance, Dr. Doris Uzoka-Anite; and other stakeholders who contributed to the bill’s successful passage.
According to the commission, the enactment of NIIRA 2025 ends over two decades of reliance on the outdated Insurance Act of 2003. The new law is expected to foster innovation, reinforce market stability, and improve consumer confidence in the industry. NAICOM believes these reforms will help unlock the sector’s full potential and ensure a more significant contribution to Nigeria’s GDP.
The Commission also affirmed its commitment to the effective implementation of the Act. It pledged to use the provisions within the law to promote industry growth, ensure regulatory excellence, and improve service delivery across all insurance segments.
NIIRA 2025 introduces several critical reforms, including a significant increase in minimum capital requirements for insurers and reinsurers. It also mandates the enforcement of compulsory insurance policies, streamlines claims settlement, and sets up a policyholder protection fund to safeguard consumers—particularly in cases of insurer insolvency.
Other key features of the law include the digital transformation of the insurance marketplace, broader participation in regional insurance schemes like the ECOWAS Brown Card System, and strict compliance measures to guarantee market integrity and operational transparency.
With these changes, industry stakeholders expect a new era of accountability, innovation, and resilience in Nigeria’s insurance ecosystem.