The Digest:
On August 5, 2025, President Bola Tinubu signed the Nigerian Insurance Industry Reform Bill (NIIRA) into law, marking a major milestone in the nation’s financial sector. This reform is set to modernize the insurance industry and contribute to the country’s goal of reaching a $1 trillion economy.
Key Points:
- The NIIRA 2025 repeals and consolidates outdated insurance laws into a modern legal framework.
- It introduces comprehensive regulation and supervision of all insurance and reinsurance businesses in Nigeria.
- The reform aims to boost transparency, innovation, and global competitiveness in the industry.
- New measures include stringent capital requirements for financial stability and compulsory insurance policies for consumer protection.
- It mandates the digitization of the insurance market to improve access and efficiency.
- The law ensures zero tolerance for delayed claims settlements and the creation of policyholder protection funds.
- It also enhances participation in regional insurance schemes like the ECOWAS Brown Card System.
- NAICOM will implement provisions of the law to unlock the full potential of the insurance industry.
- The reform is expected to increase investments, build consumer confidence, and position Nigeria as an insurance hub in Africa.
The signing of the NIIRA Act 2025 is a significant step toward financial stability and inclusive growth in Nigeria, aligning with the government’s vision for economic transformation. The insurance sector is poised for a revolution in transparency and efficiency, ensuring better consumer protection and market competitiveness.
