Insurance Operators Laud NIIRA Presidential Assent As Catalyst For Market Growth, Inclusion

The Nigerian insurance industry has backed the signing of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law, viewing it as a crucial catalyst for significant market growth and enhanced financial inclusion. Insurance operators and brokers nationwide see the Act as a pivotal step aligned with President Bola Ahmed Tinubu’s vision of building a $1 trillion economy by 2030.

Under the leadership of the Nigerian Insurers Association (NIA), insurers praised the presidential assent, describing the legislation as foundational for transformative progress within the insurance sector and the financial services landscape.

The Chairman of NIA and managing director/CEO of AXA Mansard Insurance Plc, Kunle Ahmed, emphasised that the Act boldly strengthens the regulatory framework, fosters greater public trust, expands market penetration, and modernises industry operations.

“The Act demonstrates the federal government’s commitment to deepening financial inclusion and positioning insurance as a key pillar in Nigeria’s economic architecture,” Ahmed noted. He extended heartfelt gratitude to all stakeholders involved in the development and passage of the law, highlighting the spirit of collaboration and dedication that made this achievement possible.

“This is not just a legislative victory but a shared mission. NIA stands ready to champion a more resilient and customer-centric insurance sector that contributes meaningfully to national development.”

Ahmed further affirmed the NIA’s commitment to supporting  the effective implementation of NIIRA 2025. The association plans to facilitate sector-wide understanding and adoption of the Act’s provisions, engage member companies through capacity-building and advocacy efforts, collaborate with regulatory bodies to ensure compliance, and promote innovation and inclusion consistent with the legislation’s goals.

“This is more than just a legislative victory,” Ahmed declared. “It’s a shared mission to build a more resilient, customer-centric insurance industry that meaningfully contributes to Nigeria’s national development.”

Echoing this sentiment, Prince Babatunde Oguntade, President of the Nigerian Council of Registered Insurance Brokers (NCRIB), praised the government for enacting a law that unlocks the insurance sector’s vast potential. He described NIIRA 2025 as a significant milestone that underscores the government’s resolve to create a more robust, pragmatic, and well-regulated insurance market.

According to Oguntade, the Act provides a clear framework for regulating and supervising insurance businesses, ensuring they operate transparently and fairly. Nigerians can expect improved insurance products, increased access to coverage, and stronger protection for their assets and livelihoods.

To ensure the law’s success, Oguntade urged the federal government to promptly gazette the Act and expedite the development of necessary regulations and guidelines. He encouraged insurance operators to take full advantage of the new legal environment to drive industry growth and align with the federal government’s ambitious economic targets.

One of the major changes ushered in by NIIRA 2025 is a fresh recapitalisation requirement for insurance companies to strengthen their capital bases: Life insurance firms must raise their capital from N2 billion to N10 billion, while Non-life insurance companies must increase theirs from N3 billion to N15 billion. Reinsurance companies face a capital threshold of N35 billion, representing about a 500 per cent increase for the sector overall.

As stipulated in Section 15 of the Act, no entity may conduct insurance business in Nigeria unless it maintains the higher of the stated minimum capital or a risk-based capital amount determined by the regulatory commission. This capital enhancement aims to ensure stronger financial stability across the industry.

By repealing and consolidating numerous outdated insurance laws into a single, modern framework, NIIRA 2025 positions Nigeria’s insurance sector for dynamic growth, innovation, and inclusion, with a renewed focus on serving the needs of Nigerian consumers and contributing to the nation’s economic prosperity.

The Nigerian insurance community views the NIIRA 2025 as a landmark law with the power to unlock immense growth opportunities, improve market access, and deepen financial inclusion—key pillars in realising the country’s $1 trillion economy aspiration by 2030. The positive momentum generated by this legislation signals a bright future for the nation’s insurance industry and its role in national development.

Following this development, insurance companies will undergo a fresh recapitalisation exercise to shore up their capital base to N10 billion and N15 billion for Life and Non-Life businesses, respectively, as President Bola Ahmed Tinubu assented to the Nigerian Insurance Industry Reform Bill, 2025.

Now known as the NIIRA 2025, it repeals and consolidates several outdated insurance laws into a single, modern legal framework. The new Act also sets a new capital threshold, of which Life insurance firms are to increase their capital from N2 billion to N10 billion; non-life insurance—from N3 billion to N15 billion; and Reinsurance companies—from N10 billion to N35 billion, translating to about 500 per cent capital raise.

Section 15 of the Act states that; (1)A person shall not carry on insurance business in Nigeria unless the insurer has and maintains the minimum capital, in the case of (a)non-life insurance business, the higher of(i) N15,000,000,000.00 or
(ii)risk-based capital determined by the commission (b)life assurance business, the higher of (i)N10,000,000,000.00 or (ii) risk-based capital determined by the Commission and ( c) reinsurance business, the higher of (i)N35,000,000,000.00 and (ii) risk-based capital determined by the Commission.