President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law, a decisive move to overhaul the country’s insurance sector and align it with Nigeria’s broader economic ambition to reach a $1 trillion economy.

The presidential office described the Act as a consolidation of outdated insurance legislation into a modern legal framework that sharpens regulation and supervision across insurance and reinsurance markets. This reform aims to address longstanding weaknesses in the sector while unlocking new growth opportunities.

Key provisions include higher capital requirements to ensure insurers’ financial resilience, mandatory compulsory insurance policies to enhance consumer safeguards, and a push toward digitization aimed at increasing operational efficiency and market access.

The Act further introduces strict deadlines for claims settlement, backed by a zero-tolerance stance on delays, alongside the creation of policyholder protection funds to shield customers in the event of insurer insolvency. Nigeria’s engagement with regional insurance initiatives, such as the ECOWAS Brown Card System, will also expand.

Implementation responsibility falls to the National Insurance Commission (NAICOM), which will be tasked with driving insurance penetration and positioning Nigeria as a leading insurance hub in Africa.

Presented as part of the government’s “Renewed Hope Agenda” for the insurance sector, the reform signals a commitment to financial stability and inclusive growth—key pillars for Nigeria’s economic transformation.