The immediate past Commissioner for Insurance and former Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Olorundare Sunday Thomas, has expressed confidence that the newly enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025 will transform the insurance landscape and position the sector as a key contributor to Nigeria’s economic growth.
Thomas made the remarks in Lagos at the 2025 National Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE), where he was honoured with an Award of Excellence for his contributions to the development of the insurance industry and his support for insurance journalism.
“Looking at where we are today, I want to congratulate President Bola Ahmed Tinubu for signing the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law — a process that began as far back as 2008,” Thomas said. “NIIRA will transform and revolutionise the insurance sector.”
He noted that the success of the Act would depend largely on the commitment of both regulators and industry players to its effective implementation.
“The extent to which the law succeeds will depend on the implementers and the industry’s response to its provisions. But one thing is certain — the foundation has been set to protect all stakeholders: consumers, shareholders, and operators alike,” he added.
‘Risk-Based Capital Will Strengthen the Sector’
Thomas explained that one of the key pillars of the new Act — the formalisation of risk-based capital — would strengthen the sector by allowing insurers to operate according to their financial capacity.
“We don’t all have to operate at the same level. With risk-based capital, insurers can now play where their strength lies, ensuring stability and competitiveness in the industry,” he said.
Insurance, Pension Sectors Key to $1 Trillion Economy
Speaking on how the insurance and pension industries can help realise President Tinubu’s vision of a $1 trillion economy, Thomas pointed to the massive financial assets under management within both sectors.
“The pension sector currently manages assets worth over ₦24 trillion, while the insurance sector controls about ₦4 trillion. Together, we are well-positioned to contribute meaningfully to the President’s vision of achieving a $1 trillion Gross Domestic Product (GDP),” he said.
Thomas emphasised that with sustained reforms and effective leadership, the insurance and pension sectors could accelerate their contribution to national development by 2030.
“We are on course, but we must gain more speed. With the right people managing the sector and with the support of this new law, we will take our rightful place in building the Nigerian economy,” he stated.
Appreciation for NAIPE Award
Thomas also expressed gratitude to NAIPE for recognising his efforts through its Award of Excellence, noting that his contributions to the industry were driven by sincerity and a passion for progress, not personal gain.
“Everything I did during my time at NAICOM, I did out of a sense of duty and sincerity, not in anticipation of any reward. So this recognition is a pleasant surprise, and I’m truly grateful,” he said.
He commended NAIPE for its consistent and professional coverage of the insurance and pension sectors, acknowledging the association’s role in promoting industry awareness and accountability.
“NAIPE has been there from the early days, through thick and thin, and has played a vital role in providing accurate information to stakeholders in both sectors,” Thomas added.
The NIIRA 2025, signed into law on August 5, seeks to modernise Nigeria’s insurance industry through stricter governance standards, recapitalisation, risk-based regulation, and enhanced consumer protection — reforms experts say could finally unlock the sector’s growth potential.
