The National Insurance Commission (NAICOM) has commended President Bola Tinubu for assenting to the Nigerian Insurance Industry Reform Act, 2025 (NIIRA 2025).
President Tinubu signed the NIIRA 2025 into law on Tuesday.
In a statement issued by the Commission, NIIRA 2025 was described as a game-changer for the Nigerian insurance industry.
“NIIRA 2025 is a transformative piece of legislation that provides a modernized framework to deepen insurance penetration, stimulate economic growth, protect policyholders’ interests, and attract investments into the sector.
“We are confident that this new law will unlock the full potential of the insurance industry, enabling it to make a more meaningful contribution to Nigeria’s economic development and the realization of the $1 trillion economy target,” the Commission stated.
NAICOM also expressed appreciation to the National Assembly for passing the legislation, particularly recognizing the Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, Senator Mukhail Abiru, who sponsored the bill.
The Commission further acknowledged the contributions of 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 key stakeholders for their critical roles in achieving this milestone.
According to NAICOM, the enactment of NIIRA 2025 marks a major milestone in Nigeria’s efforts to revitalise the insurance sector, over two decades after the Insurance Act of 2003.
The Commission expressed optimism that the new law will serve as a catalyst for growth, innovation, and increased market confidence in the industry, while significantly boosting its contribution to Nigeria’s Gross Domestic Product (GDP).
NAICOM pledged its commitment to the effective implementation of the Act, leveraging its provisions to drive innovation, growth, and operational excellence across the sector.
About NIIRA 2025
The new law provides for the comprehensive regulation and supervision of all insurance and reinsurance businesses operating in Nigeria.
The Senate passed the bill in December 2024, followed by the House of Representatives in March 2025.
NIIRA 2025 introduces a range of reforms, including substantial increases in minimum capital requirements for insurance companies, enforcement of compulsory insurance policies, and the digitisation of the insurance market to improve access and operational efficiency.
Other key provisions include zero tolerance for delays in claims settlement, the establishment of dedicated policyholder protection funds especially in cases of insolvency and expanded participation in regional insurance frameworks such as the ECOWAS Brown Card System.
(NAN)
