The National Insurance Commission (NAICOM) has commended the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, describing it as a transformative milestone that will significantly boost the insurance sector’s contribution to Nigeria’s Gross Domestic Product (GDP).
This was revealed in a statement issued by the Commission on Tuesday, shortly after President Bola Tinubu assented to the new legislation. The signing was announced by the President’s Special Adviser on Information and Strategy, Bayo Onanuga.
NAICOM described the new law as a bold step toward modernizing Nigeria’s insurance framework, expressing confidence that it will strengthen regulatory oversight, improve consumer protection, and attract investment into the sector.
“NAICOM believes that the new law is a promising opportunity to transform the industry and will have a high positive impact on the contribution of the insurance sector to the country’s GDP and economy as a whole,” the Commission stated. “Today, we celebrate a new dawn in the insurance sector as the sector is ready for business, and the Nigerian economy becomes the ultimate beneficiary.”
The Commission pledged to work diligently to implement the Act and leverage its provisions to drive innovation, enhance insurance penetration, and ensure better service delivery.
The Nigerian Insurance Industry Reform Act 2025 replaces the over two-decade-old Insurance Act of 2003, introducing sweeping changes aimed at revitalising the sector. Key highlights include:
- Stricter minimum capital requirements to improve the financial soundness of operators
- Mandatory enforcement of compulsory insurance policies to expand coverage and protection
- Digitisation of the insurance market to boost access and operational efficiency
- Establishment of a policyholder protection fund to secure consumers in cases of insolvency
- Zero tolerance for delayed claims settlements
- Expanded regional participation, including enhanced involvement in the ECOWAS Brown Card System
NAICOM emphasized that these reforms are expected to position the Nigerian insurance sector for global competitiveness and greater alignment with international best practices.
The regulator also acknowledged the collaborative efforts of stakeholders in making the legislation a reality, thanking the National Assembly, relevant ministries, and industry players for their contributions. The Senate passed the bill in December 2024, followed by the House of Representatives in March 2025.
The passage of NIIRA 2025 comes at a time when the finance and insurance sector is showing impressive growth, recording a 15.03% increase in Q1 2025, driven by digital innovation and increased financial inclusion. NAICOM expressed optimism that the new law will further accelerate this trajectory, moving Nigeria closer to its goal of a $1 trillion economy.
