The Nigerian Insurance Industry Reform Bill, 2025, was signed into law on Tuesday by President Bola Tinubu.
According to a statement issued by Bayo Onanuga, Special Adviser to the President on Information and Strategy, on Tuesday, the new law will offer comprehensive regulation and oversight of all insurance and reinsurance enterprises operating in Nigeria.
The Senate passed the law in December 2024, while the House of Representatives passed it in March 2025.
The Insurance Industry Reform Act approved by Tinubu, includes numerous reforms, including a significant rise in minimum capital requirements for insurance companies.
The proposed new minimum for non-life insurance was N25 billion, or risk-based capital as assessed by NAICOM (formerly N10 billion).
According to NAICOM, life insurance has increased to N15 billion, or RBC, from N8 billion, and reinsurance will be N45 billion, up from N20 billion, or RBC.
The RBC requires insurers to assess capital in accordance with the risks they encounter, which include insurance, market, credit, and operational risks.
The new Act introduces critical measures such as stringent capital requirements to ensure the financial soundness of operators, enforcement of mandatory insurance policies to enhance consumer protection, digitisation of the insurance market to improve access and efficiency, zero tolerance for delays in claims settlement, creation of dedicated policyholder protection funds, especially in cases of insolvency, and expanded participation in regional insurance schemes, including
“This development reaffirms the administration’s commitment to financial stability, economic development, and inclusive growth.
“The NIIRA Act 2025 ushers in a new era of transparency, innovation, and global competitiveness for the insurance industry. It aligns with the Federal Government’s vision of achieving a $1 trillion economy,” said Onanuga.
The insurance industry reform bill was sponsored by the Chairman of the Senate Committee on Banking, Insurance & Other Financial Institutions, Tokunbo Abiru. It repealed the Insurance Act, Cap. I17, Laws of the Federation of Nigeria, 2004; the Marine Insurance Act, Cap. M3, Laws of the Federation of Nigeria, 2004; the Motor Vehicles (Third Party Insurance) Act, Cap. M22, Laws of the Federation of Nigeria, 2004; the National Insurance Corporation of Nigeria Act, Cap. N54, Laws of the Federation of Nigeria, 2004; and the Nigeria Reinsurance Corporation Act, Cap. N131, Laws of the Federation of Nigeria, 2004, to provide for a comprehensive legal and regulatory framework for insurance business in Nigeria and for related matters.
