The Nigerian Insurance Industry Reform Act (NIIRA) 2025 mandates that people running insurance businesses online must obtain a license from the National Insurance Commission to practice in Nigeria.
This is according to Section 201 of the Nigerian Insurance Industry Reform Bill, recently signed into law by President Bola Tinubu.
The Act stresses that the Commission shall have the power to impose administrative sanctions against insurance institutions for non-compliance with its provisions.
This section of the legislation affects all platforms that provide insurance services online.
The Act warns that online or electronic companies are prohibited from commencing operations unless licensed by the appropriate authority.
Section 201(1) reads, “A person shall not commence or carry on web, internet, or electronic-based insurance or related business unless licensed by the Commission.”
These are obligations under terrorism and existing international and local laws, regulations, and regulatory directives.
The legislation also recommends a penalty of N25 million for individuals found operating unlicensed insurance businesses in the country, as previously reported by Naijaonpoint.
The Nigerian Insurance Industry Reform Act (NIIRA) 2025 is said to have repealed and consolidated several outdated insurance laws into a single, modern legal framework.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.