President Bola Tinubu
President Bola Tinubu has signed the Nigerian Insurance Industry Reform Bill 2025 into law, aiming to strengthen Nigeria’s financial sector and accelerate the nation’s march toward a $1 trillion economy. The Nigerian Insurance Industry Reform Act (NIIRA) 2025 introduces a range of reforms designed to overhaul Nigeria’s insurance landscape. These reforms include stringent capital requirements to guarantee the financial stability of insurance firms, mandatory insurance policies to strengthen consumer protection, and the full digitization of the sector to improve accessibility and operational efficiency.
The law also sets a firm stance against delays in claims settlement, establishes dedicated protection funds for policyholders in the event of insolvency, and promotes broader participation in regional insurance initiatives such as the ECOWAS Brown Card System. The National Insurance Commission (NAICOM) has been tasked with enforcing and implementing the provisions of the NIIRA 2025 to unlock the full potential of the insurance sector and boost insurance coverage nationwide.
The signing of this law has led to a significant increase in insurance stocks, with 15 out of 17 stocks rising. Some notable gainers include:
– *Mutual Benefits Assurance*: 10% increase from N2.20 to N2.42
– *Custodian Investment*: 9.96% increase from N39.15 to N43.05
– *Cornerstone Insurance*: 9.96% increase from N4.82 to N5.30
– *Consolidated Hallmark Insurance (CHI)*: 9.97% increase from N3.71 to N4.08
Industry analysts believe the reform will drive new investments, improve consumer confidence, and establish Nigeria as a leading insurance hub in Africa. The law is expected to foster greater trust in the insurance market and expand coverage for individuals and businesses across the country. By positioning Nigeria as a leading insurance hub in West Africa, the NIIRA Act 2025 is set to attract new investments and restore public trust in the sector .
