The National Insurance Commission has stated that the new Nigerian Insurance Industry Reform Act 2025 will enhance the sector’s contributions to the country’s Gross Domestic Product.
This was disclosed in a statement from the regulator late Tuesday following the announcement of the assent given to NIIRA 2025 by President Bola Tinubu.
Special Adviser to the President (Information & Strategy), Bayo Onanuga, announced the signing of the new act, which will provide for comprehensive regulation and supervision of all insurance and reinsurance businesses operating within Nigeria.
The NAICOM statement partly read, “NAICOM believes that the new law is a promising opportunity to transform the industry and will have a high positive impact on the contribution of the insurance sector to the country’s GDP and economy as a whole. With its focus on strengthening the industry’s regulatory framework, enhancing consumer protection, and promoting a more robust and effective insurance sector, the Act is set to unlock the growth and potential of the industry.
“As the industry looks to the future, stakeholders are optimistic about the positive impact of the Act on the economy and the lives of Nigerians. Today, we celebrate a new dawn in the insurance sector as the sector is ready for business, and the Nigerian economy becomes the ultimate beneficiary. We pledge to work tirelessly to ensure the successful implementation of the NIIRA 2025, leveraging its provisions to drive growth, innovation, and excellence in the insurance industry.”
The Finance and insurance sector was the fastest-growing sector of the economy at 15.03 per cent according to the Q1 GDP report, driven by digital innovation, broader financial inclusion, and improved operational efficiencies in banks and fintechs.
The insurance industry regulator affirmed that NIIRA 2025 is a game-changer for the sector, “industry, providing a modernised framework that will enhance insurance penetration, promote economic growth, protect policyholders’ interests and attract investments into the sector. We are confident that this new law will unlock the potential of the insurance sector, enabling it to contribute more meaningfully to Nigeria’s economic development and achieve the $1tn economy.
“The new legislation marks a significant milestone in the country’s efforts to reinvigorate the insurance industry, over two decades after the enactment of the Insurance Act 2003. The Act marks a new era in the ongoing efforts to strengthen the Nigerian insurance industry, enabling it to compete favourably in the African insurance market and globally. NAICOM is confident that the new law will catalyse growth, innovation, and enhance market confidence in the insurance sector, unlocking its full potential and significantly driving economic development. The Nigerian Insurance Industry Reform Act 2025 represents a transformative milestone and a true game-changer for the nation’s insurance landscape.”
NAICOM went on to express gratitude to lawmakers, the ministers and other stakeholders for their roles in the passage of the bill.
The Senate passed the bill in December 2024, and the House of Representatives passed it in March 2025. The Insurance Industry Reform Act included a wide range of reforms, including a substantial increase in minimum capital requirements for insurance companies.
The new Act introduces critical measures such as stringent capital requirements to ensure the financial soundness of operators, enforcement of compulsory insurance policies to enhance consumer protection, digitisation of the insurance market to improve access and efficiency, zero tolerance for delays in claims settlement, creation of dedicated policyholder protection funds, especially in cases of insolvency and expanded participation in regional insurance schemes, including the ECOWAS Brown Card System.
