Signed Insurance Reforms Bill aligns FG’s vision of building a $1 trillion economy – Senate

* Hails Tinubu for Signing the bill into law, assures that the NIIRA 2025 represents one of the most comprehensive and far-reaching reforms in the history of Nigeria’s insurance industry

By Henry Umoru

ABUJA- THE Senate has hailed President Bola Tinubu for assenting to the Nigerian Insurance Industry Reform Bill, 2025, saying that it is a landmark legislation that aligns seamlessly with the Federal Government’s vision of strengthening the nation’s march towards building a $1 trillion economy.

In a statement on Wednesday by the Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions and lead sponsor of the bill, Senator Adetokunbo Abiru, APC, Lagos East while commending President Tinubu for Signing the bill into law, noted that the action is also a testament to what is achievable when all arms of government work in concert to deliver on the Renewed Hope Agenda, just it stressed that some of the transformative provisions of the NIIRA include the following: Repeals and replaces multiple outdated insurance enactments with a single, modern legal framework to ensure clarity, coherence, and regulatory efficiency.Introduces higher capital adequacy thresholds to strengthen the financial resilience and operational soundness of insurers and reinsurers.

According to him, the Act will establishes dedicated protection funds to safeguard policyholders’ interests in cases of insurer insolvency or failure, strengthen the enforcement of compulsory insurance policies (e.g. motor vehicle, public buildings, and workers’ compensation) to protect lives and property as well as promote end-to-end digitisation of insurance operations, facilitating transparency, improved service delivery, and broader market access.

Abiru said that it will mandate strict timelines for claims assessment and payment, with penalties for undue delays, to restore trust and accountability in the system, provide for Nigeria’s deeper participation in regional insurance systems such as the ECOWAS Brown Card Scheme, enhancing cross-border coverage and cooperation, as well as well empowers the National Insurance Commission (NAICOM) with broader supervisory and enforcement powers to ensure compliance, innovation, and market discipline.

He said that these reforms are not merely regulatory adjustments, they are strategic interventions aimed at unlocking the untapped potential of Nigeria’s insurance ecosystem, attracting investment, creating jobs, and deepening financial inclusion.

The Senate has assured that the NIIRA 2025 represents one of the most comprehensive and far-reaching reforms in the history of Nigeria’s insurance industry.

In a statement on Wednesday by the Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions and lead sponsor of the bill, , said that the Act repeals and consolidates outdated statutes, replacing them with a unified legal framework designed to foster innovation, strengthen regulatory oversight, and protect policyholders across the country.

Senator Abiru said, “I warmly commend His Excellency, President Bola Ahmed Tinubu, GCFR for graciously assenting to the Nigerian Insurance Industry Reform Bill, 2025, now enacted as the Nigerian Insurance Industry Reform Act (NIIRA), 2025. This marks a pivotal milestone in our collective efforts to reposition Nigeria’s financial services sector for inclusive growth and global competitiveness.

“As the lead sponsor of this landmark legislation, with all the members of the Senate Committee on Banking, Insurance and Other Financial Institutions as co-sponsors, I am proud to affirm that the NIIRA 2025 represents one of the most comprehensive and far-reaching reforms in the history of Nigeria’s insurance industry.

The Act repeals and consolidates outdated statutes, replacing them with a unified legal framework designed to foster innovation, strengthen regulatory oversight, and protect policyholders across the country.

“This reform is a key pillar in the legislative agenda of the 10th National Assembly and aligns seamlessly with the Federal Government’s vision of building a $1 trillion economy. It is also a testament to what is achievable when all arms of government work in concert to deliver on the Renewed Hope Agenda.

Some of the transformative provisions of the NIIRA include the following: Repeals and replaces multiple outdated insurance enactments with a single, modern legal framework to ensure clarity, coherence, and regulatory efficiency.

“Introduces higher capital adequacy thresholds to strengthen the financial resilience and operational soundness of insurers and reinsurers.

“Establishes dedicated protection funds to safeguard policyholders’ interests in cases of insurer insolvency or failure.

“Strengthens the enforcement of compulsory insurance policies (e.g. motor vehicle, public buildings, and workers’ compensation) to protect lives and property.

“Promotes end-to-end digitisation of insurance operations, facilitating transparency, improved service delivery, and broader market access.

“Mandates strict timelines for claims assessment and payment, with penalties for undue delays, to restore trust and accountability in the system.

“Provides for Nigeria’s deeper participation in regional insurance systems such as the ECOWAS Brown Card Scheme, enhancing cross-border coverage and cooperation.

“Empowers the National Insurance Commission (NAICOM) with broader supervisory and enforcement powers to ensure compliance, innovation, and market discipline.

These reforms are not merely regulatory adjustments — they are strategic interventions aimed at unlocking the untapped potential of Nigeria’s insurance ecosystem, attracting investment, creating jobs, and deepening financial inclusion.

“I wish to acknowledge the collaborative support of the leadership of the Senate, the members of the Senate Committee on Banking, Insurance and Other Financial Institutions, my other colleagues in both chambers of the National Assembly, the Management of National Insurance Commission (NAICOM), and stakeholders across the insurance value chain who contributed to the successful passage of this important legislation.

“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.”

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