New Insurance Reform Law Poised to Boost Nigeria’s GDP, Strengthen Sector Confidence

The newly signed Nigerian Insurance Industry Reform Act (NIIRA 2025) is expected to transform the nation’s insurance landscape and significantly raise its contribution to the Gross Domestic Product (GDP), industry stakeholders have said.

Speaking at the 10th Annual Conference of the Nigerian Association of Insurance and Pension Editors, experts noted that the law could make insurance a key pillar in Nigeria’s drive toward a $1 trillion economy.

Signed into law by President Bola Tinubu in July, NIIRA 2025 introduces sweeping reforms aimed at expanding insurance penetration, strengthening financial stability, and restoring public confidence in the sector.

Olusegun Omosehin, Commissioner for Insurance and Chief Executive of the National Insurance Commission (NAICOM), said the law will spur economic growth, create jobs, and enhance local retention capacity. Represented by NAICOM’s Director of Legal, Enforcement, and Market Development, Tamis Usman, Omosehin explained that the Act establishes a two-tier capital requirement system.

“The first tier raises minimum capital to N10 billion for Life, N15 billion for Non-Life, and N35 billion for Reinsurance. This gives insurers greater financial muscle to take on bigger risks locally,” Usman said. “The second tier is risk-based capital, requiring firms to hold capital proportionate to their exposure. This will boost confidence in insurers’ ability to meet obligations.”

He added that the reforms will enforce prompt claims settlement, mandate simplified policy documents, and ensure clearer terms of contracts—changes designed to improve trust in the industry.

Bola Odukale, Director General of the Nigeria Insurers Association (NIA), emphasized that proper implementation would be critical. “A law without enforcement is just paper. Our role as an industry is to ensure compliance, create awareness, and leverage compulsory insurance provisions, from construction sites to fuel stations and haulage operations,” she said.

Odukale noted that the NIA is already working with members to improve product development, strengthen claims payment practices, and increase public education on the benefits of insurance.

On his part, Makanjuola Tubi, Executive Director of Business Operations at emPLE Life Assurance, stressed the need to target Nigeria’s vast informal sector, which accounts for about 60 percent of GDP but remains largely uninsured.

“There’s a huge untapped market. If we don’t capture the informal sector, insurance contributions to GDP will remain minimal. Operators must innovate and find ways to drive financial inclusion,” Tubi said.

With NIIRA 2025 now in force, industry leaders agree that its success will depend on strict enforcement, industry discipline, and creative strategies to reach underserved populations.