Tinubu signs insurance reform bill into law as Nigeria targets $1trn economy
President Bola Tinubu has signed the Nigerian Insurance Industry Reform Bill, 2025 into law — a major step towards strengthening the country’s financial sector and achieving the administration’s $1 trillion economic vision.
Now known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, the law repeals and replaces several outdated statutes, establishing a unified legal framework for insurance and reinsurance operations in Nigeria.
The development was announced on Tuesday by Bayo Onanuga, special adviser to the president on information and strategy.
“This Act is a bold move toward financial stability, investor confidence, and inclusive economic growth,” Onanuga said.
He added that the reform aligns with President Tinubu’s Renewed Hope Agenda and the administration’s broader economic transformation plan.
KEY REFORMS IN THE ACT
The NIIRA 2025 introduces several far-reaching reforms aimed at modernising Nigeria’s insurance landscape.
These include stricter capital requirements to ensure the financial soundness of operators and the enforcement of compulsory insurance to improve consumer protection.
The Act also provides for the digitisation of the insurance market to enhance access and efficiency, and introduces zero tolerance for delays in claims settlement.
To further protect policyholders, the law mandates the creation of dedicated compensation funds, especially in cases of insolvency.
It also expands Nigeria’s participation in regional insurance schemes such as the ECOWAS Brown Card System.
The National Insurance Commission (NAICOM) is tasked with implementing the new provisions and driving reforms that unlock the full potential of the sector.
According to the presidency, the new law is expected to boost investor confidence, deepen insurance penetration, and restore trust in the system.
Experts say the reform could reposition Nigeria as a leading insurance hub in Africa while providing stronger protections for policyholders and attracting fresh investments into the financial services industry.
