The Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law in August 2025, aims to enhance the insurance sector’s contribution to Nigeria’s GDP. Key reforms include higher capital requirements, risk-based supervision, and improved consumer protection, which are expected to:
- Strengthen insurers’ capacity for large infrastructure and agricultural projects.
- Boost public confidence through better claims rules.
- Open up cross-border opportunities under AfCFTA and ECOWAS.
- Expand insurance lines, increasing premium inflows.
Currently, insurance penetration in Nigeria is below 1% of GDP, but with NIIRA, stakeholders believe the sector can significantly contribute to the government’s goal of a $1 trillion economy by 2030. Successful implementation will depend on timely regulations from NAICOM and market discipline, with smaller firms potentially needing to merge or attract investors to meet new requirements. Although compliance costs may pressure some firms in the short term, the long-term outlook remains positive. It is expected to create a stronger, more trusted, and more impactful insurance industry that can drive GDP growth.
