Tope Adebayo LP, a Lagos-based full-service law firm, has commended the signing into law of the Nigerian Insurance Industry Reform Act, 2025 (NIIRA 2025) by President Bola Tinubu, describing the enactment as a defining moment for the Nigerian insurance industry and one that ushers the insurance sector into a new phase of regulatory maturity.

In an update titled Policy Brief: Nigerian Insurance Industry Reform Act, 2025 (NIIRA 2025), the law firm, active across different segments of Nigeria’s commerce sector, noted that with the signing into law on August 5, 2025, the legislation effectively repealed the Insurance Act, 2003, and introduced a modern, risk-sensitive framework towards strengthening financial resilience, improving market conduct, and enhancing policyholder protection. It said: “At its core, NIIRA 2025 reflects a deliberate shift toward global best practice.

“One of its most consequential provisions is the introduction of a strict licensing and specialisation regime. Insurers are now required to operate exclusively as either life or non-life companies, ending the era of composite insurance within a defined transition period.

This aligns Nigeria with international standards, improves supervisory clarity, and allows for more focused risk underwriting.” “Equally significant is the transition to a Risk-Based Capital (RBC) framework”.