The Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Senator Adetokunbo Abiru, representing Lagos East Senatorial District, has declared that the insurance industry reform would help the federal government in its vision to build a $1 trillion economy and strengthening the financial services sector in the country.
Commending President Bola Tinubu for assenting to the Nigerian Insurance Industry Reform Bill, 2025, now enacted as the Nigerian Insurance Industry Reform Act, NIIRA, 2025, he said “this marks a pivotal milestone in our collective efforts to reposition Nigeria’s financial services sector for inclusive growth and global competitiveness.”
Senator Abiru, who was the the lead sponsor of the legislation, with all the members of his committee as co-sponsors, affirmed in a statement he personally signed and released on Wednesday 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“The Act repeals and consolidates outdated statutes, replacing them with a unified legal framework designed to foster innovation, strengthen regulatory oversight, and protect policyholders across the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,” he stressed.
The lawmaker listed some of the transformative provisions of the NIIRA to include the following: repeals and replaces multiple outdated insurance enactments with a single, modern legal framework to ensure clarity, coherence, and regulatory efficiency; and introduces higher capital adequacy thresholds to strengthen the financial resilience and operational soundness of insurers and reinsurers.
Senator Abiru added that it also establishes dedicated protection funds to safeguard policyholders’ interests in cases of insurer insolvency or failure; and strengthens the enforcement of compulsory insurance policies (e.g. motor vehicle, public buildings, and workers’ compensation) to protect lives and property; and promotes end-to-end digitisation of insurance operations, facilitating transparency, improved service delivery, and broader market access.
Others, according to him are: 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; and empowers the National Insurance Commission, NAICOM with broader supervisory and enforcement powers to ensure compliance, innovation, and market discipline.
These reforms, he further explained, “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.”