Tinubu Signs Tax Reform Bill in Law, Intends $1 Trillion Economy Vision.

President Tinubu Signs Landmark Nigerian Insurance Industry Reform Act, 2025 to Strengthen Economy and Modernize Financial Sector

In a significant move aimed at transforming Nigeria’s financial landscape, President Bola Ahmed Tinubu has officially signed into law the Nigerian Insurance Industry Reform Bill, 2025. Now enacted as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, the legislation represents a major overhaul of the country’s insurance regulatory framework and is viewed as a strategic step toward achieving Nigeria’s ambitious target of building a $1 trillion economy.

This landmark reform repeals and replaces several outdated insurance laws, unifying them under a comprehensive and modern legal structure designed to better serve the contemporary needs of Nigeria’s economy. By streamlining regulatory oversight and establishing a single, robust framework for the governance of insurance and reinsurance activities nationwide, the new law seeks to foster transparency, strengthen investor confidence, and enhance consumer protection.

Function of the Reform Bill

According to a statement released on Tuesday by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the enactment of the NIIRA 2025 is a vital component of President Tinubu’s Renewed Hope Agenda—a broad economic strategy aimed at revitalizing key sectors and fostering inclusive growth. The statement described the Act as a transformational measure that underscores the federal government’s dedication to creating a more resilient, transparent, and efficient financial ecosystem.

“The introduction of the Nigerian Insurance Industry Reform Act underscores the administration’s unwavering commitment to financial stability, economic progress, and inclusive national development,” the statement read.

Among the key innovations introduced by the NIIRA 2025 are rigorous new capital requirements for insurance and reinsurance firms, intended to ensure financial solvency and improve operational resilience across the industry. The Act also mandates the enforcement of compulsory insurance coverage in various sectors, significantly boosting consumer protection and broadening the insurance net across the population.

Achievable path with the Reform Bill

To modernize and expand the sector, the Act also encourages the adoption of digital technologies. It mandates the digitisation of insurance services, which is expected to increase accessibility for consumers, reduce inefficiencies, and drive innovation. By embracing technology, the law aims to make insurance products more affordable and widely available, especially in underserved regions of the country.

Another groundbreaking provision of the legislation is the imposition of strict timelines for claim settlements, with the goal of eliminating delays that have historically plagued the industry. The Act requires prompt processing and disbursement of claims, ensuring that policyholders receive timely compensation. In addition, it calls for the establishment of dedicated policyholder protection funds, which will serve as financial safeguards for consumers in the unfortunate event of an insurer’s insolvency.

The NIIRA 2025 also seeks to deepen Nigeria’s regional integration by expanding the country’s active participation in cross-border insurance programs, such as the ECOWAS Brown Card Scheme. This move is expected to enhance cooperation among West African nations and promote regional mobility for insured individuals and businesses.

Responsibility for enforcing and overseeing the implementation of the new law has been entrusted to the National Insurance Commission (NAICOM). The Commission will play a central role in driving the reform agenda forward. It is expected to promote a higher level of insurance penetration, improve the overall performance of the industry, and attract both domestic and international investment into Nigeria’s insurance sector.

Vision of Nigeria with the Reform Bill

With the passage of the NIIRA 2025, Nigeria is now positioning itself as a rising hub for insurance services in Africa. The sweeping reforms embedded in the Act are anticipated to stimulate substantial growth within the sector, create employment opportunities, and support the government’s broader vision for economic diversification.

President Tinubu’s approval of this historic legislation adds to a growing list of economic reforms aimed at revitalizing Nigeria’s financial institutions. By strengthening regulatory frameworks and encouraging inclusive development, the administration continues to lay the foundation for a dynamic and future-ready Nigerian economy.

In summary, the Nigerian Insurance Industry Reform Act, 2025 stands as a bold and strategic step toward economic modernization, sectoral transformation, and national prosperity. Its implementation marks the beginning of a new era for the country’s insurance landscape and reinforces Nigeria’s commitment to sustainable economic growth.