PRESIDENT Bola Tinubu has signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law.

He assented to it on Tuesday, August 5, according to a statement by his special adviser on information and strategy, Bayo Onanuga.

The Act is aimed at strengthening the financial sector as the country pushes toward achieving a $1 trillion economy by 2030.

It repeals and consolidates several outdated insurance laws into a single, modern legal framework, providing for comprehensive regulation and supervision of all insurance and reinsurance businesses operating within Nigeria.

“This development reaffirms the administration’s commitment to financial stability, economic development, and inclusive growth.

“The NIIRA Act 2025 ushers in a new era of transparency, innovation, and global competitiveness for the insurance industry. It aligns with the Federal Government’s vision of achieving a $1 trillion economy,” Onanuga stated.

According to him, the Act is a part of the renewed hope agenda for the insurance sector, noting that it introduces critical measures such as stringent capital requirements to ensure the financial soundness of operators.

Onanuga stressed that the Act would help ensure enforcement of compulsory insurance policies to enhance consumer protection, and the digitisation of the insurance market to improve access and efficiency.

He stated further that the new Act would ensure zero tolerance for delayed claims settlement, creation of dedicated policyholder protection funds in insolvency cases, and expanded participation in regional insurance schemes like the ECOWAS Brown Card System.

“The National Insurance Commission (NAICOM) is mandated to administer and implement the provisions of the NIIRA 2025 in a manner that unlocks the industry’s full potential and significantly improves insurance penetration across the country,” Onanuga said.

He believes that the reform introduced by the new law is expected to catalyse new investments, boost consumer confidence, and position Nigeria as a leading insurance hub in Africa.

The ICIR reports that the Senate had, in December 2024, passed the bill which consolidates various existing laws governing insurance in the country, including the Insurance Act (2003), Marine Insurance Act, Motor Vehicles (Third Party Insurance) Act, National Insurance Corporation of Nigeria Act, and Nigerian Reinsurance Corporation Act.

A notable provision in the bill is the reduction of the minimum capital requirement for reinsurance businesses from N45 billion to N35 billion.