……The New NIIRA Act 2025 to Drive Transparency, Digitalization, and Consumer Protection in Insurance Sector
President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law, marking a transformative shift aimed at repositioning the insurance sector as a key driver of Nigeria’s projected $1 trillion economy.
The new legislation introduces far-reaching reforms under the Renewed Hope Agenda for the Insurance Sector, focusing on strengthening regulation, increasing investor confidence, and expanding consumer access.
Key provisions of the NIIRA 2025 include:
Stricter capital requirements to ensure financial stability of insurance operators;
Mandatory insurance policies to enhance consumer protection nationwide;
Full digitization of the insurance ecosystem for improved accessibility and operational efficiency;
Strict enforcement of prompt claims settlement, eliminating unnecessary delays;
Establishment of policyholder protection funds, particularly to safeguard clients in cases of insolvency;
Broadened participation in regional insurance platforms such as the ECOWAS Brown Card Scheme.
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The Act empowers the National Insurance Commission (NAICOM) to fully implement these reforms, with a clear mandate to deepen insurance penetration and unlock the sector’s full economic potential.
The NIIRA 2025 is expected to spur new investments, foster innovation, and build consumer trust—key ingredients for revitalizing the financial services industry and contributing to the country’s broader economic transformation goals.
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