Insurance experts say the Nigerian Insurance Industry Reform Act (NIIRA) 2025, recently signed into law by President Bola Tinubu, has strengthened the sector’s capacity to contribute more meaningfully to the nation’s economy.
Speaking at the 10th annual conference of the Nigerian Association of Insurance and Pension Editors (NAIPE), stakeholders argued that the legislation could reposition insurance as a major driver of Nigeria’s ambition to build a $1 trillion economy.
Raising Capital, Building Trust
Commissioner for Insurance and NAICOM CEO, Olusegun Omosehin, represented by Dr. Tamis Usman, said the Act introduces tougher capital requirements to strengthen insurers’ financial standing.
Under NIIRA, minimum capital is now set at ₦10 billion for life insurance, ₦15 billion for non-life, and ₦35 billion for reinsurance companies. The law also introduces a risk-based capital model, requiring insurers to hold capital in proportion to the risks they underwrite.
“This will boost capacity, ensure claims can be paid, and restore trust in the sector,” Usman said, adding that simplified policy documents and clearer contracts are now mandatory to enhance transparency.
Implementation and Awareness Key
Director-General of the Nigerian Insurers Association (NIA), Mrs. Bola Odukale, stressed that the success of NIIRA depends on strong enforcement.
“One thing is to have a law; another is to implement it. Our role as NIA is to ensure compliance among members, create market awareness, and push self-regulation so the benefits of this Act are realised,” she said.
Odukale noted that NIIRA strengthens compulsory insurance requirements — from road tankers and petrol stations to buildings under construction — which will not only grow the industry but also protect the public.
Expanding Market Reach
For Mr. Makanjuola Tubi, Executive Director at emPLE Life Assurance, the real opportunity lies in reaching underserved Nigerians, particularly those in the informal sector, which contributes about 60% of GDP.
“There is a large uncaptured market waiting to be tapped,” he said. “Operators must find creative ways to expand financial inclusion if the industry is to boost its GDP contribution.”
Reform With Economic Ambition
With tougher capital standards, compulsory insurance enforcement, and clearer consumer protections, experts believe NIIRA 2025 could reset Nigeria’s insurance sector — building confidence, expanding coverage, and aligning the industry with the country’s long-term economic vision.
