Abuja, Nigeria | August 8, 2025
President Bola Ahmed Tinubu has signed into law the Nigerian Insurance Industry Reform Act 2025, marking a historic step toward overhauling and modernising the country’s insurance sector.
The new legislation, signed at the Presidential Villa in Abuja, is designed to strengthen regulatory oversight, promote investor confidence, and boost public trust in insurance services. It also seeks to align Nigeria’s insurance framework with international best practices while encouraging greater participation of local and foreign players in the sector.
Speaking shortly after the signing, President Tinubu described the Act as a pivotal component of his administration’s economic reform agenda aimed at revitalising key non-oil sectors. “This law is a bold step toward ensuring that Nigeria’s insurance industry becomes more competitive, transparent, and responsive to the needs of our people and businesses,” he said.
The Nigerian Insurance Industry Reform Act introduces new provisions for capital adequacy, risk-based supervision, consumer protection, and claims settlement transparency. It also grants enhanced powers to the National Insurance Commission (NAICOM) to enforce compliance, impose sanctions, and regulate emerging products such as digital insurance and micro-insurance schemes.
Industry stakeholders have welcomed the development, describing it as a long-awaited move that will open the door to innovation and improved penetration in Nigeria’s underperforming insurance market. Current figures show that insurance penetration in Nigeria remains below 2 percent of GDP, one of the lowest in Africa.
With the Act now in force, NAICOM is expected to release detailed implementation guidelines and timelines for operators to align with the new regulatory expectations. The government has assured stakeholders of continuous engagement and support to ensure a smooth transition into the reformed landscape.
