President Tinubu Signs New Insurance Act to Boost Financial Sector
President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Bill of 2025 into law, a significant move aimed at strengthening the country’s financial sector. This landmark legislation, now known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, is a key step toward achieving the administration’s goal of a $1 trillion economy.
The new act replaces several old insurance laws with a single, modern legal framework designed to regulate and oversee all insurance and reinsurance companies in Nigeria. This reform is expected to usher in a new era of transparency, innovation, and global competitiveness for the industry, aligning with the government’s vision for economic growth.
The NIIRA Act introduces several crucial measures to improve the sector. These include stricter financial requirements for insurance companies, compulsory insurance policies to better protect consumers, and the digitization of the market to increase access and efficiency. It also mandates zero tolerance for delays in claims settlement and establishes dedicated funds to protect policyholders in case of company insolvency.
The National Insurance Commission (NAICOM) is tasked with implementing the new law to help the industry reach its full potential and increase insurance coverage across the nation. This reform is anticipated to attract new investments, boost consumer confidence, and establish Nigeria as a major insurance hub in Africa.
