President Bola Ahmed Tinubu has signed into law the Nigerian Insurance Industry Reform Act (NIIRA) 2025, a transformative piece of legislation aimed at modernizing Nigeria’s insurance sector and accelerating the country’s journey toward a $1 trillion economy.
The Act introduces sweeping reforms, including new regulatory “tariffs” in the form of stringent capital requirements, compulsory insurance enforcement, and digitization mandates.
The landmark legislation repeals and consolidates several outdated insurance laws into a unified legal framework, positioning Nigeria’s insurance industry for greater transparency, innovation, and global competitiveness.
“This development reaffirms the administration’s commitment to financial stability, economic development, and inclusive growth,” said Bayo Onanuga, Special Adviser to the President on Information & Strategy in a statement.
The NIIRA 2025 empowers the National Insurance Commission (NAICOM) to regulate and supervise all insurance and reinsurance businesses operating within Nigeria.
It introduces a series of reforms designed to strengthen consumer protection, attract investment, and improve operational efficiency.
Key provisions of the Act include:
“The NIIRA Act ushers in a new era of transparency and competitiveness,” Onanuga added. “It aligns with the Federal Government’s Renewed Hope Agenda and the broader goal of building a resilient financial sector.”
Industry analysts expect the new law to catalyze fresh investments, boost consumer confidence, and significantly improve insurance penetration across Nigeria. The reforms are also seen as a strategic move to position Nigeria as a regional insurance hub in Africa.
The Act’s emphasis on digitization and compulsory coverage is expected to drive innovation and expand the reach of insurance services to underserved populations.
With the NIIRA 2025 now in effect, stakeholders across the financial services industry are gearing up for implementation, compliance, and strategic realignment.