President Bola Tinubu has signed the Nigerian Insurance Industry Reforms (NIIR) Bill 2025 into law, marking a significant step in the federal government’s agenda to strengthen the financial sector and realise a $1 trillion economy.

The announcement was made in a statement issued on Tuesday in Abuja by Presidential Spokesperson, Mr Bayo Onanuga.

The new Nigerian Insurance Industry Reform Act (NIIRA) 2025 repeals outdated legislation and consolidates various laws into a single modern framework to regulate insurance and reinsurance activities in the country.

According to Onanuga, the Act establishes comprehensive oversight of all insurance-related businesses operating in Nigeria and reinforces the Tinubu administration’s commitment to financial stability, economic growth, and inclusive development.

“The NIIRA 2025 ushers in a new era of transparency, innovation, and global competitiveness for the Nigerian insurance sector. It aligns with the Federal Government’s vision of building a $1 trillion economy,” the statement read.

As part of the Renewed Hope Agenda, the law introduces stricter capital requirements for insurance companies to promote financial soundness. It also mandates compulsory insurance schemes to boost consumer protection and promote digital access and efficiency.

Key provisions of the Act include zero tolerance for delayed claims, the creation of a policyholder protection fund, and enhanced participation in regional programmes such as the ECOWAS Brown Card Scheme.

The National Insurance Commission (NAICOM) is tasked with implementing the law and ensuring it unlocks the full potential of the industry while increasing insurance penetration nationwide.

The reform is expected to attract new investments, restore consumer confidence, and position Nigeria as a leading insurance hub on the African continent.