- New NIIRA 2025 Law Aims for a $1 Trillion Economy
- It introduces stricter rules for insurance companies
- The goal is to increase insurance coverage across the country
President Bola Ahmed Tinubu has signed a new law, the Nigerian Insurance Industry Reform Bill, 2025, to significantly change Nigeria’s financial sector. This key piece of legislation, part of his “Renewed Hope Agenda,” is designed to completely revamp the country’s insurance industry and help achieve his administration’s goal of a one-trillion-dollar economy.
Eko Hot Blog reports that the new law, now officially known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, replaces a collection of outdated insurance laws with a single, comprehensive legal framework.
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The purpose of this modernization is to bring greater transparency, innovation, and global competitiveness to the Nigerian insurance market, which has long been perceived as underperforming.
The Act introduces several critical reforms aimed at strengthening the industry and protecting consumers. To ensure financial stability, it establishes stricter capital requirements for insurance companies, reducing the risk of firms being unable to pay claims.
The act also makes certain insurance policies mandatory to ensure better coverage for the public. A particularly significant feature is the introduction of a zero-tolerance policy for delays in claims settlement, a move intended to restore public trust in the industry.
Furthermore, the NIIRA 2025 paves the way for the full digitization of the insurance market, which is expected to make insurance products more accessible and operations more efficient. It also mandates the creation of policyholder protection funds to safeguard customers in the event of an insurer’s failure.
The National Insurance Commission (NAICOM) has been given the responsibility of implementing the new Act. The government’s ultimate goal is to significantly increase insurance penetration across the country, improve the industry’s overall performance, and attract new investments, positioning Nigeria as a major insurance hub in Africa and a global player.
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