New Insurance Law Enacted in Nigeria (NIIRA) 2025

Nigeria has passed and signed into law the Nigerian Insurance Industry Reform Act (NIIRA) 2025, effectively replacing the previous Act, which had been in place for over 20 years.

The reform aims to enhance market stability, attract investment, and improve consumer protection across the sector.

Key provisions of the NIIRA 2025 include:

• Higher capital requirements for insurance companies;
• Stronger enforcement of compulsory insurance policies;
• Digitization of insurance processes to modernize market operations;
• Regulation of claims settlement deadlines to ensure timely payouts;
• Establishment of policyholder protection funds, particularly in cases of insurer insolvency.

The reform is part of a broader national effort to modernize Nigeria’s financial sector.

The National Insurance Commission (NAICOM) is tasked with overseeing the implementation and enforcement of the new law.