The National Insurance Commission and other stakeholders in the insurance industry have hailed the new Nigerian Insurance Industry Reform Act 2025, stating that it will enhance the sector’s contributions to the country’s economy.

NAICOM, in a statement following the announcement of the assent given to NIIRA 2025 by President Bola Tinubu, said the act would boost the sector’s contribution to the country’s Gross Domestic Product.

Special Adviser to the President (Information & Strategy), Bayo Onanuga, on Tuesday announced the signing of the new act, which he said would provide for comprehensive regulation and supervision of all insurance and reinsurance businesses operating within Nigeria.

The NAICOM statement partly read, “NAICOM believes that the new law is a promising opportunity to transform the industry and will have a high positive impact on the contribution of the insurance sector to the country’s GDP and economy as a whole.

With its focus on strengthening the industry’s regulatory framework, enhancing consumer protection, and promoting a more robust and effective insurance sector, the Act is set to unlock the growth and potential of the industry.

“As the industry looks to the future, stakeholders are optimistic about the positive impact of the Act on the economy and the lives of Nigerians. Today, we celebrate a new dawn in the insurance sector as the sector is ready for business, and the Nigerian economy becomes the ultimate beneficiary. We pledge to work tirelessly to ensure the successful implementation of the NIIRA 2025, leveraging its provisions to drive growth, innovation, and excellence in the insurance industry.”

The finance and insurance sector was the fastest-growing of the economy at 15.03 per cent, according to the Q1 GDP report, driven by digital innovation, broader financial inclusion, and improved operational efficiencies in banks and fintechs.

The insurance industry regulator affirmed that NIIRA 2025 is a game-changer for the “industry, providing a modernised framework that will enhance insurance penetration, promote economic growth, protect policyholders’ interests and attract investments into the sector. We are confident that this new law will unlock the potential of the insurance sector, enabling it to contribute more meaningfully to Nigeria’s economic development and achieve the $1tn economy.

“The new legislation marks a significant milestone in the country’s efforts to reinvigorate the insurance industry, over two decades after the enactment of the Insurance Act 2003. The Act marks a new era in the ongoing efforts to strengthen the Nigerian insurance industry, enabling it to compete favourably in the African insurance market and globally. NAICOM is confident that the new law will catalyse growth and innovation and enhance market confidence in the insurance sector, unlocking its full potential and significantly driving economic development. The Nigerian Insurance Industry Reform Act 2025 represents a transformative milestone and a true game-changer for the nation’s insurance landscape.”

NAICOM went on to express gratitude to lawmakers, the ministers and other stakeholders for their roles in the passage of the bill.

The Senate passed the bill in December 2024, while the House of Representatives passed it in March 2025.

The Insurance Industry Reform Act included a wide range of reforms, including a substantial increase in minimum capital requirements for insurance companies.

The new Act introduces critical measures such as stringent capital requirements to ensure the financial soundness of operators, enforcement of compulsory 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 the ECOWAS Brown Card System.

The Nigerian Insurers Association, in a statement signed by its Chairman, Kunle Ahmed, on Wednesday, also commended the Tinubu presidency for the assent, saying, “This Act, signed into law by President Tinubu, represents a bold step toward strengthening the regulatory framework, enhancing public trust, improving market penetration, and modernising operations within the industry. It reflects the Federal Government’s commitment to deepening financial inclusion and ensuring that insurance becomes a robust pillar in Nigeria’s economic architecture and in line with the president’s vision for achieving a $1tn economy by 2030.”

NIA went on to pledge full support for the implementation of the Act: “As a leading voice of the industry, the Nigerian Insurers Association pledges its full support toward the successful implementation of the NIRRA Act. We are dedicated to facilitating sector-wide understanding and adoption of the Act’s provisions, engaging our member companies and stakeholders through capacity-building, advocacy, and technical support, partnering with regulators to ensure seamless execution and compliance, and promoting innovation and inclusion, in line with the goals of the legislation.”

Also speaking, the Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions and lead sponsor of the bill, Senator Adetokunbo Abiru, on Wednesday commended President Tinubu for assenting to the bill.

Abiru affirmed that the reform aligns with the Federal Government’s goal of building a $1tn economy, stressing that it is “a testament to what is achievable when all arms of government work in concert to deliver on the Renewed Hope Agenda.”

Abiru maintained that the reforms are not just adjustments but strategic interventions aimed at unlocking the untapped potential of Nigeria’s insurance ecosystem to attract investment, create jobs, and deepen financial inclusion.

“The implementation phase now begins, and I am confident that with NAICOM’s renewed mandate, we will witness a significant leap in insurance penetration, investor confidence, and public trust. Together, we are laying the foundations for a safer, more resilient, and prosperous Nigeria,” Abiru added.

The chairman of the 2025 Almond Insurance Industry Awards Panel of Judges, Ms Prisca Soares, in her comments, said that industry players were already preparing for the recapitalisation that is inevitable with the assent to the new bill.

Soares said, “I think the future of the industry is bright. First of all, I mean, it’s important for every company to determine what line of business, I think. It is no longer possible to be into everything; you can actually concentrate on one area. It’s a big challenge, but we have all seen it coming. So I believe that people have been preparing themselves for it, and I think that we’ll see an improvement. I don’t foresee a situation where we will have many casualties, for instance. I believe that people have been preparing themselves for this.”