Tinubu Signs Historic Insurance Reform Law, Eyes $1 Trillion Economy

President Bola Ahmed Tinubu has officially signed the Nigerian Insurance Industry Reform Bill, 2025 into law, marking a significant step in the federal government’s agenda to modernize the financial sector and move Nigeria closer to its $1 trillion economic milestone.

The legislation, now known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, was announced in a statement issued by the President’s Special Adviser on Information and Strategy, Bayo Onanuga. The Act repeals several outdated insurance laws, replacing them with a consolidated and robust legal framework designed to bring increased oversight, innovation, and transparency to the sector.

The new law establishes a comprehensive regulatory structure for insurance and reinsurance operators in Nigeria and aligns with the broader economic reform efforts under the administration’s Renewed Hope Agenda.

According to the statement, the NIIRA introduces key provisions aimed at revitalizing the insurance sector. These include stricter capital requirements to bolster financial resilience, mandatory insurance policies to protect consumers, and full digitisation of insurance operations to improve accessibility and efficiency. The law also imposes zero tolerance for delays in claims processing and establishes policyholder protection funds to shield customers from the risks of insurer insolvency.

Furthermore, the reform encourages Nigeria’s active participation in regional insurance schemes such as the ECOWAS Brown Card System, with the National Insurance Commission (NAICOM) tasked with implementing and enforcing the provisions of the Act.

The administration anticipates that the newly signed law will trigger increased investor confidence, stimulate sectoral growth, and position Nigeria as a competitive insurance hub on the African continent.