In a major step toward achieving Nigeria’s $1 trillion economy ambition, President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law. The Act modernizes the nation’s underperforming insurance sector, which currently contributes less than 1% to GDP, through bold regulatory reforms aimed at boosting investor confidence, expanding access, and driving innovation.
digitizationThe NIIRA 2025 empowers the National Insurance Commission (NAICOM) to strengthen oversight, enforce claims timelines, and mandate the digitization of insurance services. It introduces higher capital thresholds, expands microinsurance provisions, and streamlines claims processes to build public trust and increase market participation.
“A reformed insurance sector will not only protect lives and assets but also provide the financial backbone needed to drive investments, entrepreneurship, and economic transformation,” President Tinubu stated.
What This Means for Stakeholders:
Investors: A more stable, attractive, and regulated industry
Policyholders: Faster claims and broader, digital-first insurance access
Government: Greater financial inclusion and revenue generation
Businesses: Improved risk coverage, especially for SMEs and exporters
Implementation begins immediately, with NAICOM leading engagement across stakeholders. Industry experts hail this reform as a game-changer for Nigeria’s economic resilience and competitiveness.
