NIIRA 2025 Strengthens Nigeria's Insurance Sector

The Nigerian Insurance Industry Reform Act (NIIRA) 2025 was signed into law by the President of Nigeria on 31st July 2025, mandating the recapitalization of insurance and reinsurance companies. Section 15(1) of the Act prescribes minimum capital requirements based on the type of business, with compliance required within one year.

The National Insurance Commission (NAICOM) is tasked with enforcing these provisions, including the cancellation of licenses for non-compliance. By the end of the last week, NAICOM presented 50 financially sound companies, comprising 48 insurance and 2 reinsurance firms.

The Nigerian Council of Registered Insurance Brokers (NCRIB) congratulated NAICOM and recognized the Act's provisions as beneficial for policyholders. Notably, Section 43 requires insurance brokers to maintain Professional Indemnity insurance of at least N100 million or 50% of their preceding year's income, establishing a higher minimum standard for consumer protection.