Nigeria's Insurance Sector Reforms Under President Tinubu

As Nigeria marks its 66th anniversary, the insurance industry is focused on strengthening its operations to bolster national economic growth. The Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law by President Bola Ahmed Tinubu on July 31, 2025, consolidates outdated insurance laws into a modern framework.

This legislation raised minimum capital requirements for life insurance underwriters from N2 billion to N10 billion, for general business underwriters from N3 billion to N15 billion, and for composite firms from N5 billion to N25 billion. The National Insurance Commission (NAICOM) announced that 50 insurance and reinsurance companies met the new capital requirements following a recapitalization exercise from August 2025 to July 2026, while six firms are awaiting liquidation.

Additionally, NAICOM established the Insurance Policyholders’ Protection Fund (IPPF) to safeguard policyholders against insurer insolvency. The reforms also include Insurtech licensing and a renewed emphasis on enforcing compulsory insurance policies.