Tinubu’s Insurance Reform Bill Targets Financial Sector Growth

August 5, 2025
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President Bola Ahmed Tinubu signed the Nigerian Insurance Industry Reform Bill 2025 into law on August 5, 2025, a landmark move to modernize Nigeria’s insurance sector and support the nation’s goal of a $1 trillion economy, as confirmed by a statement from presidential spokesperson Bayo Onanuga.

The Nigerian Insurance Industry Reform Act (NIIRA) 2025 consolidates outdated laws, including the Insurance Act of 2004, into a unified framework, introducing stricter capital requirements, N25 billion for non-life insurance, N15 billion for life insurance, and N45 billion for reinsurance.

The Act enforces zero tolerance for delays in claims settlement and promotes digitization to enhance market access and efficiency, aligning with Tinubu’s Renewed Hope Agenda.

The National Insurance Commission (NAICOM) is tasked with implementing NIIRA 2025 to boost insurance penetration, catalyze investments, and position Nigeria as Africa’s leading insurance hub.

Sponsored by Senator Tokunbo Abiru, the bill, passed by the Senate in December 2024 and the House in March 2025, introduces consumer protection measures like dedicated funds for policyholders in case of insolvency and supports regional initiatives like the ECOWAS Brown Card Scheme, per Politics Nigeria. Onanuga emphasized that the reforms ensure “transparency, innovation, and global competitiveness,” addressing Nigeria’s low 0.5% insurance penetration rate.

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