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To reshape Nigeria’s financial landscape, President Bola Ahmed Tinubu has signed into law the Nigerian Insurance Industry Reform Act 2025 (NIIRA 2025), sparking widespread commendation from key stakeholders in the insurance sector.
The National Insurance Commission (NAICOM) and the Nigerian Insurers Association (NIA) have jointly hailed the legislation as a transformative blueprint that promises to revolutionize the country’s insurance ecosystem, deepen penetration, and catalyze sustainable economic growth.
Speaking on the development, Commissioner for Insurance, Mr. Olusegun Omosehin, described the legislation as a “game-changer” and a “historic breakthrough” in the reform of Nigeria’s insurance regulatory framework, which has remained largely unchanged since the Insurance Act of 2003.
According to Omosehin, NIIRA 2025 provides a forward-thinking legal structure that aligns with international best practices, particularly in enhancing risk management, strengthening consumer protection, and improving transparency in operations.
“The NIIRA 2025 introduces a robust, modernised regulatory framework that will drive innovation, attract both foreign and local investment, and significantly boost insurance penetration,” he said.
He added that the Act aligns seamlessly with the government’s $1 trillion economy target by 2030, with the insurance sector positioned as a critical pillar in delivering on this ambition.
The newly signed law officially replaces the outdated Insurance Act of 2003, which stakeholders have long criticized for lacking the flexibility to respond to the dynamic needs of a rapidly evolving financial and risk management environment.
For the first time, the industry now has a clear, enforceable framework for policyholder protection, claims transparency, risk-based supervision, and inclusive insurance models for underserved demographics such as SMEs, farmers, and artisans.
The Commissioner emphasized that NAICOM is committed to leveraging the provisions of NIIRA 2025 to drive digital transformation, increase trust and credibility, and ensure that the insurance sector contributes more meaningfully to Nigeria’s GDP.
Echoing NAICOM’s enthusiasm, Mr. Kunle Ahmed, Chairman of the Nigerian Insurers Association (NIA), said the law marks a new chapter in the development of the sector.
“The presidential assent to NIIRA 2025 signals a strong commitment to a vibrant, inclusive, and resilient insurance market. It reflects the government’s determination to make insurance a core part of Nigeria’s financial infrastructure,” Ahmed stated.
He noted that the Act would drive market expansion, public confidence, digital compliance, financial inclusion, and foster a climate of innovation critical to job creation and economic resilience.
Ahmed also praised the collaborative efforts of all stakeholders including the National Assembly, Ministry of Finance, and civil society experts who provided technical insights during the consultative process.
The Commissioner expressed profound gratitude to President Tinubu for his visionary leadership, describing the assent as “a bold reform step” in alignment with the Renewed Hope Agenda. He also commended:
Senator Mukhail Adetokunbo Abiru, Chairman, Senate Committee on Banking, Insurance, and Other Financial Institutions
Hon. Ahmed Usman Jaha, Chairman, House Committee on Insurance and Actuarial Matters
Mr. Wale Edun, Coordinating Minister of the Economy and Minister of Finance
Dr. Doris Uzoka-Anite, Minister of State for Finance
According to Omosehin, their dedication and bipartisan support were crucial in the timely passage of the Act.
The NIIRA 2025 introduces sweeping reforms including:
A modern solvency regime based on risk-based capital requirements
Enhanced consumer protection regulations
Frameworks for microinsurance and takaful (Islamic insurance)
Digitization mandates for transparency and regulatory compliance
Penalties for erring operators and safeguards against systemic risk
The Act also encourages greater collaboration between insurers, reinsurers, and digital platforms to scale access, affordability, and trust in insurance services nationwide.
NAICOM has pledged to immediately begin a nationwide sensitization and implementation campaign to ensure full understanding and compliance across the industry.
The regulator has also committed to capacity-building, stakeholder workshops, and technology upgrades to support operators and ensure that the benefits of the Act are realized in full.
The NIA, for its part, announced that it would roll out engagement sessions with member companies, investors, and consumers to ensure a seamless transition to the new legal environment.
“This is not just a policy milestone—it is a new beginning for the Nigerian insurance industry. We must now walk the talk,” Ahmed said.
As the insurance industry enters this new era, experts predict a surge in insurance adoption, foreign direct investment (FDI), and job creation, all of which align with President Tinubu’s broader economic agenda.
The Nigerian public—especially business owners, startups, farmers, and informal sector players—stand to gain from more accessible, affordable, and reliable insurance products backed by strong regulatory oversight.