TINUBU SIGNS INSURANCE INDUSTRY BILL INTO LAW
President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Bill, 2025, into law, marking a major milestone in the transformation of the country’s insurance sector. The new legislation, now known as the Nigerian Insurance Industry Reform Act (NIIRA), introduces sweeping changes aimed at improving the regulation, supervision, and efficiency of both insurance and reinsurance businesses in Nigeria.
Key Provisions of the Act:
Higher Capital Requirements:
The law significantly raises the minimum capital base for insurance companies to ensure greater financial stability and sustainability.
Enhanced Consumer Protection:
It mandates certain insurance policies as compulsory and establishes a dedicated fund to protect policyholders in cases where an insurance company becomes insolvent.
Digitalization of Operations:
The act encourages the adoption of digital technologies to modernize the insurance sector, making it more efficient, transparent, and accessible to the public.
Faster Claims Settlement:
A “zero-tolerance” policy is introduced for delays in claim payments, compelling insurance companies to settle claims promptly.
Expanded Regional Participation:
The law enhances Nigeria’s role in regional insurance frameworks such as the ECOWAS Brown Card System, promoting cross-border cooperation.
According to Bayo Onanuga, Special Adviser to the President on Information & Strategy, this reform is a significant step toward creating a more transparent, innovative, and competitive insurance industry. He emphasized that the NIIRA aligns with President Tinubu's broader economic vision of building a $1 trillion economy.
The bill was sponsored by Senator Tokunbo Abiru and was passed by both the Senate and the House of Representatives before being signed into law. It repeals multiple outdated insurance laws and consolidates them into a single, modern legal and regulatory framework.
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