The Nigerian Senate and key industry stakeholders have praised the newly signed Nigerian Insurance Industry Reform Act (NIIRA) 2025, calling it a landmark reform poised to revolutionize the country’s financial services sector.
President Bola Tinubu’s assent to the legislation, which repeals the outdated Insurance Act of 2003, has been widely welcomed as a catalyst for renewed investor confidence, increased insurance penetration, and sustainable economic growth.
A Milestone Reform
Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Tokunbo Abiru, described the NIIRA as one of the most far-reaching reforms in Nigeria’s financial sector history.
“This Act replaces a fragmented and outdated legal regime with a unified, modern framework designed to foster innovation, strengthen regulatory oversight, and protect policyholders nationwide,” Abiru stated. He emphasized that the Act would play a critical role in restoring public trust, improving accountability, and enhancing Nigeria’s integration with regional insurance systems such as the ECOWAS Brown Card Scheme.
He noted that Nigeria’s insurance industry has long suffered from low penetration—just 0.5% of GDP, far below the African average—due to regulatory inefficiencies, poor enforcement, and low consumer confidence. NIIRA 2025, he said, is designed to confront these challenges directly and reposition the sector for long-term growth.
Empowering the Regulator
The new law significantly enhances the powers of the National Insurance Commission (NAICOM), equipping it with broader supervisory and enforcement authority to ensure compliance, promote innovation, and uphold market discipline.
Senator Abiru praised the collaborative effort that led to the Act’s passage, thanking the Senate leadership, members of the National Assembly, NAICOM, and industry stakeholders for their support. “With NIIRA, we are laying the foundations for a safer, more resilient, and prosperous Nigeria,” he concluded.
NAICOM: A New Era Begins
NAICOM also welcomed the signing of the Act, calling it a “game-changer” for the insurance industry. In a statement, the commission said NIIRA 2025 provides a modern legal framework that will boost insurance penetration, attract investments, safeguard policyholders’ interests, and support Nigeria’s goal of becoming a $1 trillion economy.
“This marks a significant milestone in the history of our industry and underscores this administration’s commitment to financial sector reform and economic growth,” NAICOM stated.
Private Sector Reacts
Industry experts and operators also praised the reform. Mr. Idakolo Gbolade, Managing Director/CEO of SD&D Capital Management Limited, noted that the Act was long overdue and addresses critical issues such as capital inadequacy and trust deficits in the insurance industry.
“In other parts of the world, insurance companies are bigger than banks, but in Nigeria, it’s the opposite,” he said. “Delays in claims payments and poor customer experience have hurt the sector, but this reform offers a path to redemption.”
He added that a well-capitalized and efficiently regulated insurance sector can complement the banking industry and play a vital role in achieving Nigeria’s economic aspirations, just as it has done in economies like South Africa.
A Bright Future for Nigerian Insurance
Operators expressed optimism that the NIIRA would redefine the future of Nigeria’s insurance industry. Chairman of the Nigerian Insurers Association (NIA), Mr. Kunle Ahmed, called the legislation a turning point.
“This is a pivotal moment for the insurance ecosystem,” Ahmed said. “NIIRA strengthens regulation, enhances public trust, and modernizes the industry’s operations. It puts us on the path to global competitiveness.”
Despite Nigeria’s status as Africa’s largest economy, its insurance sector has historically underperformed. With the introduction of the NIIRA, stakeholders believe the industry can finally begin to realize its full potential and significantly contribute to national GDP.
Looking Ahead
With the NIIRA now law, the focus shifts to effective implementation. Stakeholders are calling for a swift rollout of regulatory guidelines and engagement across the insurance value chain to ensure the Act delivers on its transformative promises.
The consensus is clear: NIIRA 2025 has the potential to reshape Nigeria’s insurance landscape, drive economic resilience, and create a stronger, more inclusive financial system for all.
