Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru, on Wednesday applauded President Bola Ahmed Tinubu for assenting to the Nigerian Insurance Industry Reform Bill, 2025.
In a statement issued in Abuja, Abiru described the new law as a major milestone in Nigeria’s efforts to transform its financial services sector for inclusive growth and global relevance.
As the sponsor of the Bill, the senator expressed pride in the legislation, calling it one of the most sweeping reforms in the history of Nigeria’s insurance industry.
According to him, the Act is poised to drive significant improvements in insurance penetration, boost investor confidence, and enhance public trust in the system.
The statement reads in part: “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“The Act repeals and consolidates outdated statutes, replacing them with a unified legal framework designed to foster innovation, strengthen regulatory oversight, and protect policyholders across the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Repeals and replaces multiple outdated insurance enactments with a single, modern legal framework to ensure clarity, coherence, and regulatory efficiency.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.
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“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.”