The National Insurance Commission (NAICOM) has described the newly signed Nigerian Insurance Industry Reform Act (NIIRA) 2025 as a transformative development that will boost the insurance sector’s contribution to the national economy.
The Commission stated this in a release issued Tuesday, following President Bola Tinubu’s assent to the Act. The legislation, passed by the National Assembly earlier this year, replaces the Insurance Act of 2003 and introduces sweeping reforms aimed at strengthening the regulatory framework of the industry.
According to NAICOM, the new law is expected to enhance insurance penetration, increase investor confidence, and provide greater protection for policyholders. “The Act is set to unlock the growth and potential of the industry,” the statement read. “With its focus on strengthening the industry’s regulatory framework, enhancing consumer protection, and promoting a more robust and effective insurance sector, the Act marks a new dawn for the industry.”
President Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, announced the presidential assent, calling the move part of the administration’s wider reforms to reposition Nigeria’s financial sector.
NAICOM praised the inclusion of key provisions such as higher capital requirements for insurers, stricter enforcement of compulsory insurance policies, digitisation of the market, and the establishment of a dedicated policyholder protection fund.
The Commission expressed optimism that the law will position the Nigerian insurance sector for stronger regional and global competitiveness, especially through platforms like the ECOWAS Brown Card System.
“The Act is a game-changer that will not only increase the sector’s contribution to GDP but will also drive innovation, operational efficiency, and consumer confidence,” NAICOM said.
The Finance and Insurance sector was Nigeria’s fastest-growing economic segment in the first quarter of 2025, expanding by 15.03%, according to the National Bureau of Statistics. Analysts attribute this growth to financial inclusion, fintech disruption, and renewed investor interest.
NAICOM concluded by commending lawmakers, federal ministers, and industry stakeholders for their roles in achieving the landmark legislation. The Commission pledged to ensure full and effective implementation of the law in line with national economic objectives.
