August 6, 2025/United Capital Report
Bottomline: President Bola Tinubu has signed into law the Nigerian Insurance Industry Reform Act (NIIRA) 2025, a landmark legislation that repeals and consolidates several outdated insurance laws into a modern, unified framework.
The NIIRA 2025 provides for comprehensive regulation and supervision of all insurance and reinsurance businesses operating within Nigeria. This reform is expected to significantly strengthen consumer protection, deepen financial inclusion, and enhance investor confidence in the sector.
Key Provisions of the NIIRA 2025:
1. Policyholder Protection Funds – Dedicated funds to safeguard consumers in cases of insolvency.
2. Prompt Claims Settlement – Strict enforcement of zero tolerance for delays in claims payment.
3. Stronger Capital Requirements – Ensuring operators remain financially sound and resilient.
4. Mandatory Insurance Policies – Expanding coverage to protect more households and businesses.
5. Digitisation of the Insurance Market – Leveraging technology to improve access, efficiency, and transparency.
6. Regional Insurance Integration – Deeper participation in ECOWAS schemes such as the Brown Card System for cross‑border coverage.
Our forthcoming detailed analysis of the NIIRA 2025 will highlight how the Act is poised to rationalise Nigeria’s insurance and financial industries, while serving as a key pillar in the drive to build a US$1 trillion Nigerian economy.
Indeed, this is a new dawn for Nigeria’s financial sector and its contribution to sustainable economic prosperity.
