The chairman of the senate committee on banking, insurance, and other financial institutions, Senator Adetokunbo Abiru (APC, Lagos), has lauded President Bola Tinubu for signing the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law, describing it as a landmark achievement for the country’s financial services sector.
In a statement issued in Abuja, Abiru said the legislation marks one of the most sweeping overhauls in the history of Nigeria’s insurance industry, replacing outdated statutes with a unified legal framework aimed at driving innovation, strengthening regulation, and safeguarding policyholders.
“This reform is a cornerstone in our collective ambition to reposition the insurance sector as a catalyst for inclusive growth and global competitiveness,” Abiru said. “It is fully aligned with the federal government’s vision of building a $1 trillion economy under the Renewed Hope Agenda.”
Key provisions of the NIIRA include higher capital adequacy thresholds for insurers and reinsurers, the establishment of dedicated protection funds to cover policyholders in cases of insolvency, and the enforcement of compulsory insurance lines such as motor, public buildings, and workers’ compensation. The Act also mandates end-to-end digitalisation of insurance operations, sets strict timelines for claims processing with penalties for delays, and enhances Nigeria’s participation in regional schemes like the ECOWAS Brown Card for cross-border coverage.
The legislation further grants the National Insurance Commission (NAICOM) expanded supervisory and enforcement powers to bolster compliance, encourage innovation, and maintain market discipline.
Abiru emphasised that the reforms are not simply regulatory updates but strategic measures to attract investment, boost insurance penetration, create jobs, and deepen financial inclusion. He said implementation has commenced immediately, expressing confidence that the Act will drive investor confidence and rebuild public trust in the industry.
He acknowledged the support of the senate leadership, lawmakers in both chambers of the National Assembly, NAICOM, and other stakeholders whose collaboration ensured the successful passage of the Bill.
“With NIIRA now in force, Nigeria is laying the groundwork for a more resilient, transparent, and prosperous insurance sector, one that will contribute meaningfully to national development,” Abiru added.
