14 AUG 2025
NIA · 3 min · Regulation
NIIRA 2025 Signed into Law by President Tinubu
On 5 August 2025, President Bola Ahmed Tinubu signed the landmark Nigerian Insurance Industry Reform Act, 2025 (NIIRA 2025), marking the most comprehensive overhaul of the sector in over two decades.
Key Highlights of NIIRA 2025
- Stricter capital requirements: ₦15 billion for non-life insurers, ₦10 billion for life insurers, and ₦35 billion for reinsurers.
- Claims protection: zero tolerance for delayed claims with strict timelines and sanctions for non-compliance.
- Technology & transparency: mandatory digital reporting, solvency monitoring, and customer data protections.
- Market expansion: incentives for micro-insurance, agriculture, health, and MSME segments.
The reforms aim to boost policyholder confidence, deepen penetration (currently among the lowest in Africa), and attract new investment into underwriting and distribution. Operators now have defined transition windows to meet the new capitalization thresholds and systems requirements.
“Faster, fairer claims and stronger balance sheets will restore trust and unlock growth across the insurance value chain.”
Industry Commentary — Lagos
What this means for consumers
- Stronger protections and clearer timelines for claims payment.
- More product options (including micro-insurance) and better digital experiences.
- Potential premium adjustments as insurers recapitalize and upgrade systems.
What this means for insurers & brokers
- Capital planning, potential mergers/partnerships, and tighter risk management.
- Mandatory digital reporting and enhanced compliance functions.
- Opportunities in underserved lines like agriculture, health, and MSME covers.
