The Nigerian Insurance Industry Reform Act 2025 (NIIRA 2025), signed into law on August 5, 2025, by President Bola Ahmed Tinubu, marks a transformative overhaul of Nigeria’s insurance sector. Consolidating foundational laws like the Nigeria Tax Act, the Nigerian Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act, NIIRA 2025 establishes a modern regulatory framework. With provisions for higher capital thresholds, risk-based regimes, enhanced governance, digital integration, and stronger consumer protections, the Act aims to elevate the sector’s contribution from 0.5% of GDP to a globally competitive benchmark, fostering financial inclusion and economic resilience.

This analysis explores the Act’s implications for Nigeria’s economy, insurance companies, compliance managers, and prospective investors, highlighting opportunities and risks. The NGX Insurance Index’s 54.28% surge post-enactment signals market optimism, yet enforcement gaps and regulatory overlaps pose challenges. This document provides practical insights for stakeholders navigating this pivotal reform.

Download the Article