Tinubu Shakes Up Insurance Sector With Historic Reform Bill

President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Bill, 2025 into law, marking a major milestone in the transformation of the country’s financial sector and supporting the push toward a $1 trillion economy.

This was disclosed in a statement on Tuesday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga.

The Nigerian Insurance Industry Reform Act (NIIRA) 2025 replaces and consolidates several outdated insurance laws into one modern, comprehensive legal framework. The new legislation establishes robust regulation and supervision for all insurance and reinsurance operations within Nigeria.

According to the statement, the NIIRA 2025 underscores the Tinubu administration’s strong commitment to financial stability, economic progress, and inclusive growth.

“The NIIRA Act 2025 ushers in a new era of transparency, innovation, and global competitiveness for the insurance sector. It aligns with the Federal Government’s vision of building a $1 trillion economy,” the statement said.

Key reforms under the new Act include:

1. Stricter capital requirements to ensure the financial soundness of insurance providers.

2. Mandatory insurance policies to better protect consumers.

3. Full digitisation of the insurance industry for improved access and efficiency.

4. Strict enforcement of timely claims payments.

5. Establishment of policyholder protection funds, especially in cases of insolvency.

6. Broadened participation in regional schemes such as the ECOWAS Brown Card System.

The National Insurance Commission (NAICOM) is tasked with implementing and overseeing the new law to unlock the sector’s full potential and boost insurance penetration nationwide.

The reforms are expected to attract significant investment, enhance public trust, and establish Nigeria as a major insurance hub on the African continent.