How Newly Signed Insurance Reform Bill Can Contribute To Tinubu’s $1 Trillion Economy
In a decisive move aimed at reshaping Nigeria’s financial architecture and boosting investor confidence, President Bola Ahmed Tinubu has signed into law the Nigerian Insurance Industry Reform Act (NIIRA) 2025 — a comprehensive piece of legislation that marks a historic overhaul of the nation’s insurance sector.
Bayo Onanuga, Special Adviser to the President on Information and Strategy, announced the development on Tuesday, describing the new law as “a landmark legislation to strengthen Nigeria’s financial sector and accelerate the nation’s march toward a $1 trillion economy.”
The NIIRA 2025 repeals and consolidates several outdated insurance laws, replacing them with a modern, robust framework for the regulation and supervision of insurance and reinsurance businesses operating in the country.
Onanuga stated that “this development reaffirms the administration’s commitment to financial stability, economic development, and inclusive growth.”
According to him, the Act introduces several key reforms that align with President Tinubu’s Renewed Hope Agenda for the insurance sector. These include:
- Stringent capital requirements to guarantee the financial soundness of insurers;
- Enforcement of compulsory insurance policies to enhance consumer protection.
- Digitisation of the insurance market is to expand access and improve efficiency.
- Zero tolerance for delays in claims settlement.
- Establishment of dedicated policyholder protection funds, particularly for cases of insolvency;
- Expanded regional participation, especially through schemes like the ECOWAS Brown Card System.
Onanuga noted that the Act “ushers in a new era of transparency, innovation, and global competitiveness for the insurance industry.” He emphasised that these changes are expected to stimulate investments, boost public confidence, and elevate Nigeria’s standing as a continental insurance powerhouse.
The National Insurance Commission (NAICOM) has been tasked with the critical role of implementing the new legislation. The agency is expected to deploy strategic tools to “administer and implement the provisions of the NIIRA 2025 in a manner that unlocks the industry’s full potential and significantly improves insurance penetration across the country,” Onanuga said.
With this reform, the Tinubu administration takes yet another significant step toward achieving its economic blueprint of transforming Nigeria into a $1 trillion economy — a vision rooted in deep financial reforms, industrial diversification, and increased investor trust.
