*The Nigerian Government explains the formulation of the ‘landmark legislation’ will further strengthen the financial sector, and fast-track Nigeria’s efforts at hitting a $1 trillion economy mark

Alexander Davis | 绿帽献妻

As part of measures to strengthen Nigeria’s financial sector and accelerate the country’s efforts at attaining a $1 trillion economy, President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Bill, 2025.

The Federal Government said the Presidential assent to the “landmark legislation” would further strengthen the financial sector, and fast-track Nigeria’s march towards a $1 trillion economy mark.

The Nigerian Insurance Industry Reform Act (NIIRA) 2025 repeals and consolidates several outdated insurance laws into a single, modern legal framework.

It is also explained that the new Act provides for comprehensive regulation and supervision of all insurance and reinsurance businesses operating within Nigeria.

Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, Tuesday, August 5, stated that the development “reaffirms the administration’s commitment to financial stability, economic development, and inclusive growth.”

The government said the NIIRA Act 2025 would usher in a new era of transparency, innovation, and global competitiveness for the insurance industry.

The statement further noted: “It aligns with the Federal Government’s vision of achieving a $1 trillion economy.”

As part of the Renewed Hope Agenda for the Insurance Sector, the Act introduces critical measures, such as:

1. Stringent capital requirements to ensure the financial soundness of operators;
2. Enforcement of compulsory insurance policies to enhance consumer protection;
3. Digitisation of the insurance market to improve access and efficiency;
4. Zero tolerance for delays in claims settlement;
5. Creation of dedicated policyholder protection funds, especially in cases of insolvency;
6. Expanded participation in regional insurance schemes, including the ECOWAS Brown Card System.

The Presidential aide also said the National Insurance Commission (NAICOM) was 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 reform introduced by the new law is expected to catalyse new investments, boost consumer confidence, and position Nigeria as a leading insurance hub in Africa, the statement added.