Nigerian Insurance Reform Act: Unlicensed agents face 6-month jail term across Nigeria

The Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law by President Bola Tinubu, imposes a six-month jail term on unlicensed insurance agents across Nigeria. According to the legislation, unlicensed agents may face prosecution and penalties, including fines.

The law requires that individuals transacting insurance business must be licensed by the National Insurance Commission. The Act also recommends a penalty of N25 million for individuals operating unlicensed insurance businesses, with the possibility of a prison sentence.

The NIIRA 2025 aims to modernize the insurance sector in Nigeria, with provisions for stringent capital requirements, compulsory insurance, and digitization. The Act consolidates outdated insurance laws into a single legal framework, with the National Insurance Commission mandated to administer and implement its provisions to improve insurance penetration in the country.