Senator Adetokunbo Abiru has said the implementation of the Nigeria Insurance Industry Reform Act (NIIRA) 2025 and the ongoing recapitalisation of insurance companies will strengthen policyholder protection, improve investor confidence and enhance the insurance sector’s contribution to Nigeria’s economic growth.
Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, made the remarks in a goodwill message on October 21, following his conferment with an Honorary Fellowship by the Nigerian Council of Registered Insurance Brokers (NCRIB).
The council presented the honour to the senator at the 2026 Closing Dinner of the National Insurance Conference and Exhibition, held at the Shehu Musa Yar’Adua Centre in Abuja, in recognition of his contributions to insurance sector reforms.
The NCRIB particularly acknowledged his engagement with industry stakeholders and his role in sponsoring NIIRA 2025 as Senate Bill 393.
President Bola Tinubu assented to the legislation on July 31, 2025. The law introduced measures aimed at strengthening capital requirements, improving risk-based supervision, promoting sound corporate governance and enhancing protection for policyholders.
In his message, Abiru described the fellowship as recognition not only of his personal contributions but also of the collective efforts of the National Assembly, the executive, regulators and industry stakeholders to reposition insurance as a stronger component of Nigeria’s financial system.
He called for sustained cooperation among lawmakers, regulators and insurance professionals to ensure the reforms translate into measurable economic and social benefits.
Recapitalisation to Improve Industry Capacity
Abiru said Nigeria’s insurance industry had significant potential to support businesses, mobilise long-term funds and facilitate infrastructure development but continued to face challenges, including low insurance penetration, limited public awareness and concerns about consumer confidence.
He said effective reforms were necessary to address these constraints and build an industry capable of meeting its obligations to policyholders while supporting investment and economic expansion.
Citing an August 2026 report by the National Insurance Commission (NAICOM), the senator said 43 insurance and reinsurance companies had met the new minimum capital requirements.
He described the development as progress towards establishing financially stronger institutions capable of underwriting larger risks, supporting business growth and providing greater protection to customers.
According to him, stronger capital positions would improve insurers’ ability to absorb losses and support investment, while effective regulatory supervision would help ensure compliance with applicable requirements.
However, Abiru stressed that recapitalisation should not become merely an exercise in meeting financial thresholds but should deliver tangible improvements in services to policyholders and businesses.
He said stronger insurers and effective regulation were essential to building confidence in the industry’s ability to settle legitimate claims and provide reliable protection against financial risks.
For businesses and investors, he added, a credible insurance system was important for managing risks associated with commercial operations, infrastructure projects and long-term investments.
Proposed Bill Targets Stronger Regulatory Oversight
The senator also highlighted the proposed Insurance Regulatory Commission Bill, 2026, which seeks to modernise the regulatory framework and strengthen the supervisory and enforcement capacity of institutions responsible for overseeing the industry.
He said the proposed legislation was intended to complement NIIRA 2025 by addressing institutional requirements for effective regulation and enforcement.
Abiru maintained that the success of the reforms would depend not only on the provisions of the laws but also on regulators’ ability to enforce compliance and operators’ commitment to maintaining high professional standards.
He urged insurance brokers and other industry practitioners to prioritise professionalism, transparency, innovation and improved customer service, noting that public confidence was crucial to expanding insurance coverage.
According to him, insurance professionals must demonstrate the value of their services by explaining policy terms clearly, treating customers fairly and building trust in insurers’ ability to honour their contractual obligations.
He called for continued engagement among lawmakers, regulators, brokers and insurance companies to ensure the reforms achieve their intended objectives.
Abiru thanked the NCRIB leadership and members for the recognition, describing the fellowship as both an honour and a renewed responsibility to serve.
He reaffirmed his commitment to collaborating with industry stakeholders to develop a more resilient, innovative and trusted insurance sector capable of protecting policyholders, supporting businesses and contributing to Nigeria’s economic development.
As the industry implements NIIRA 2025 and considers further regulatory changes, improved claims settlement, public awareness, professional conduct and effective enforcement are expected to remain important to efforts to deepen insurance penetration and strengthen consumer confidence.
