The National Insurance Commission (NAICOM) has stated that the newly signed Nigerian Insurance Industry Reform Act (NIIRA) 2025 will significantly enhance the sector’s contribution to Nigeria’s Gross Domestic Product (GDP).
This declaration came in a statement issued late Tuesday, following the announcement by President Bola Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, confirming the President’s assent to the landmark legislation.
The new law introduces a comprehensive regulatory framework for the supervision of all insurance and reinsurance businesses operating in Nigeria, aiming to revitalise the industry and deepen its role in national development.
“NAICOM believes the new law presents a transformative opportunity for the insurance sector,” the Commission said. “By strengthening the regulatory environment, enhancing consumer protection, and encouraging robust industry practices, NIIRA 2025 will unlock growth and increase the sector’s contribution to the economy.”
According to NAICOM, the Act arrives at a critical time, as Nigeria’s finance and insurance sector was the fastest-growing segment of the economy in Q1 2025, expanding by 15.03%, driven by digital innovation, financial inclusion, and improved efficiencies in banking and fintech.
Key Reforms Introduced by NIIRA 2025:
- Increased minimum capital requirements to ensure financial soundness across the industry.
- Enforcement of compulsory insurance policies to better protect consumers.
- Digitisation of the insurance market for greater access, efficiency, and transparency.
- Zero tolerance for delayed claims settlement, with clear enforcement mechanisms.
- Creation of policyholder protection funds, especially for cases involving insolvency.
- Expanded participation in regional schemes, including the ECOWAS Brown Card System.
NAICOM described the Act as a “game-changer” that will modernise the sector, attract investment, boost insurance penetration, and position the industry to contribute more meaningfully to achieving Nigeria’s vision of a $1 trillion economy.
“This marks a new era for the insurance industry, over 20 years after the last major legislative reform in 2003,” the Commission stated. “The Act will enhance Nigeria’s competitiveness in the African insurance landscape and globally. It will also catalyse innovation, build investor and consumer confidence, and support long-term economic development.”
NAICOM expressed appreciation to the National Assembly, federal ministries, and other key stakeholders for their support in passing the bill. The Senate passed NIIRA in December 2024, followed by the House of Representatives in March 2025, leading to its eventual presidential assent.
“We are committed to implementing NIIRA 2025 effectively and will work closely with industry stakeholders to realise its full potential. The Nigerian economy stands to benefit immensely,” the Commission concluded.
