…New Law Enforces Zero Tolerance on Delayed Claims, Strengthens Policyholder Protection
By John Paul
President Bola Tinubu has signed the Nigerian Insurance Industry Reforms (NIIR) Bill 2025 into law, in a landmark move aimed at removing longstanding bottlenecks in Nigeria’s insurance administration and propelling the nation toward a one trillion dollar economy.
The signing of the bill was announced yesterday in a statement by Presidential Spokesperson, Mr. Bayo Onanuga, who described the new legislation as a comprehensive overhaul of the insurance regulatory framework. The Nigerian Insurance Industry Reform Act (NIIRA) 2025 repeals obsolete laws, harmonising them into a single modern statute that provides robust oversight for all insurance and reinsurance activities in Nigeria.
Onanuga said the enactment of the law underscores the Tinubu administration’s commitment to financial stability, economic development, and inclusive growth. According to him, the NIIRA 2025 ushers in a new era of transparency, innovation, and global competitiveness for the Nigerian insurance sector, aligning with the federal government’s vision of building a one trillion dollar economy.
In line with President Tinubu’s Renewed Hope Agenda, the new law introduces stricter capital requirements to ensure the financial soundness of insurance operators. It also mandates compulsory insurance policies to bolster consumer protection and accelerate market digitisation for broader access and operational efficiency. Furthermore, the Act enforces a zero-tolerance stance on delayed claims, ensuring prompt settlement of obligations to policyholders. It also establishes policyholder protection funds to shield consumers from potential industry failures and encourages deeper participation in regional insurance schemes such as the ECOWAS Brown Card.
The National Insurance Commission (NAICOM) has been entrusted with the responsibility of implementing the provisions of the NIIRA 2025. Onanuga emphasized that NAICOM’s task will be to unlock the industry’s full potential, significantly improve insurance penetration across Nigeria, and drive new investments that will reposition the country as a leading insurance hub in Africa.
He expressed confidence that the reforms would boost consumer trust and catalyse a new wave of economic activities that will support the administration’s broader financial and developmental goals.