Tinubu signs Nigerian insurance industry reform bill into law

President Bola Tinubu has signed the Nigerian Insurance Industry Reform Bill, 2025 into law.

The new law, now known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, repeals and consolidates outdated insurance legislation into a single, modern framework.

It establishes comprehensive regulation and supervision of all insurance and reinsurance operations across the country.

This was disclosed in a statement issued by the spokesman of the president, Chief Bayo Onanuga.

He said the new law is a pivotal part of the Tinubu administration’s broader agenda to stimulate economic growth and drive financial sector transformation.

Under the reforms, minimum capital thresholds have been significantly raised: non-life insurance operators must now hold a minimum of ₦25 billion or a risk-based capital (RBC) as determined by NAICOM (up from ₦10 billion), life insurance companies must meet ₦15 billion or RBC (up from ₦8 billion), while reinsurers are required to meet ₦45 billion or RBC (up from ₦20 billion).

The Risk-Based Capital model mandates that insurance firms assess capital adequacy based on the level of risk they undertake, including operational, credit, and market risks.

The Act also makes provisions for: Compulsory enforcement of key insurance policies, Digital transformation to improve market access and service delivery, Zero tolerance for delays in claims payment, Creation of a policyholder protection fund to safeguard customers in cases of insolvency, Expansion into regional insurance schemes like the ECOWAS Brown Card.

Onanuga stated that the law marks the beginning of “a new era of transparency, innovation, and global competitiveness” for the Nigerian insurance sector, aligning with the Federal Government’s vision to grow the nation’s economy to $1 trillion.

The bill, championed by Senator Tokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, repeals several outdated laws including the Insurance Act (2004), Marine Insurance Act, and others, and provides a unified legal and regulatory framework for the modernisation of the industry.

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