The presidency has said the newly assented insurance reform act would be instrumental to achieving Nigeria’s $1 trillion economy goal.
Recall that earlier this week, President Bola Tinubu signed into law the Nigerian Insurance Industry Reform Bill 2025, a move that has welcomed by insurance stakeholders across the country.
According to a statement by Mr Tinubu’s spokesman, Mr Bayo Onanuga, the legislation now known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, will strengthen Nigeria’s financial sector and accelerate the nation’s march toward a $1 trillion economy.
The presidency said the Act repealed and consolidated several outdated insurance laws into a single, modern legal framework.
“The new Act provides for comprehensive regulation and supervision of all insurance and reinsurance businesses operating within Nigeria,” Mr Onanuga said.
“The NIIRA Act 2025 ushers in a new era of transparency, innovation, and global competitiveness for the insurance industry. It aligns with the Federal Government’s vision of achieving a $1 trillion economy,” he added.
The presidential spokesman said the new law introduced measures such as: Stringent capital requirements to ensure the financial soundness of operators; Enforcement of compulsory insurance policies to enhance consumer protection; Digitisation of the insurance market to improve access and efficiency; Zero tolerance for delays in claims settlement; Creation of dedicated policyholder protection funds, especially in cases of insolvency; and Expanded participation in regional insurance schemes, including the ECOWAS Brown Card System.
Mr Onanuga said the National Insurance Commission (NAICOM) has been mandated to administer and implement the provisions of the NIIRA 2025 to unlock the industry’s full potential and significantly improve 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 presidency stated.
Nigeria has set its sight to become a $1 trillion economy by 2030. This goal, unveiled by the administration of President Tinubu, will see coordinating financial and economic bodies consolidate on efforts. For instance, the Central Bank of Nigeria (CBN) with its ongoing recapitalisation programme for banks is playing its part.
Analysts, however, noted that the recent rebasing of the country’s gross domestic product (GDP) which puts the economy at less than $400 billion, may impact the goal.