President Bola Tinubu has assented to the Nigerian Insurance Industry Reform Bill, 2025.
In a statement signed by Special Adviser to the President on Information & Strategy, Bayo Onanuga, on Tuesday, the new act will provide for comprehensive regulation and supervision of all insurance and reinsurance businesses operating within Nigeria.
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 RBC requires insurers to calculate capital based on the risks they face, including insurance, market, credit, and operational risks.
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.
“This development reaffirms the administration’s commitment to financial stability, economic development, and inclusive growth.
“The NIIRA Act 2025 ushers in a new era of transparency, innovation, and global competitiveness for the insurance industry. It aligns with the Federal Government’s vision of achieving a $1 trillion economy,” said Onanuga.
The insurance industry reform bill was sponsored by the Chairman, Senate Committee on Banking, Insurance & Other Financial Institutions, Tokunbo Abiru. It repealed the Insurance Act, Cap. I17, Laws of the Federation of Nigeria, 2004; the Marine Insurance Act, Cap. M3 Laws of the Federation of Nigeria, 2004; the Motor Vehicles (Third Party Insurance) Act, Cap. M22, Laws of the Federation of Nigeria, 2004; the National Insurance Corporation of Nigeria Act, Cap. N54, Laws of the Federation of Nigeria, 2004; the Nigeria Reinsurance Corporation Act, Cap. N131, Laws of the Federation of Nigeria, 2004; to provide for a comprehensive legal and regulatory framework for insurance business in Nigeria; and for related matters.
Source: Punchng
