The National Insurance Commission (NAICOM) has stated that the recently signed Nigerian Insurance Industry Reform Act (NIIRA) 2025 will significantly enhance the insurance sector’s contribution to Nigeria’s Gross Domestic Product (GDP) and overall economic development.
The Commission made this known in a statement on Tuesday following President Bola Tinubu’s assent to the new legislation. The signing was officially announced by Bayo Onanuga, Special Adviser to the President on Information and Strategy.
According to NAICOM, the NIIRA 2025 introduces a comprehensive regulatory and supervisory framework for all insurance and reinsurance activities in Nigeria. The new law is designed to modernise the industry, strengthen consumer protection, and stimulate growth and innovation.
“NAICOM believes that the new law is a promising opportunity to transform the industry. It will have a significant positive impact on the sector’s contribution to GDP and the broader economy,” the statement read.
With enhanced regulatory tools, stricter compliance measures, and a focus on operational transparency, NAICOM said the Act will unlock the full potential of the insurance sector, ensuring it plays a more prominent role in the government’s vision of achieving a $1 trillion economy.
NAICOM noted that the reform is particularly timely, as the Finance and Insurance sector was the fastest-growing segment of the economy in Q1 2025, expanding by 15.03%, driven by digital innovation and broader financial inclusion.
“Today, we celebrate a new dawn in the insurance sector. The sector is now better positioned for business, and the Nigerian economy is set to reap the benefits. We pledge to work tirelessly to implement NIIRA 2025 effectively, using it as a lever to drive growth, innovation, and excellence,” NAICOM said.
Key Highlights of NIIRA 2025:
- Increased minimum capital requirements for insurance companies to ensure financial stability.
- Stricter enforcement of compulsory insurance policies to boost consumer protection.
- Full digitisation of insurance operations to expand access and improve efficiency.
- Zero tolerance for delays in claims settlement, with mechanisms to fast-track payments.
- Establishment of Policyholder Protection Funds, especially for cases involving insolvency.
- Increased participation in regional schemes, such as the ECOWAS Brown Card System, to foster cross-border insurance collaboration.
NAICOM hailed the Act as a “game-changer”, describing it as a historic reform that comes more than two decades after the last major update to the sector—the Insurance Act of 2003.
“This transformative legislation positions Nigeria to compete favourably in Africa’s insurance landscape and beyond. It will enhance investor confidence and drive sustainable development in the sector,” the statement added.
The Commission also expressed its appreciation to lawmakers, ministers, and stakeholders for their roles in facilitating the passage of the bill. The Senate approved the bill in December 2024, followed by the House of Representatives in March 2025, before its final assent by the President.
