President Bola Tinubu has triggered the biggest shake-up in Nigeria’s insurance history by signing the Industry Reform Bill 2025 a move designed to fortify the financial sector and fast-track the nation’s push toward a $1 trillion economy.

Now known as the Nigerian Insurance Industry Reform Act (NIIRA) 2025, the new law scraps multiple obsolete insurance statutes and introduces a single, modern framework for regulating insurance and reinsurance operations nationwide.

Presidential spokesman, Bayo Onanuga, who confirmed the presidential assent in a statement on Tuesday, described the Act as a “milestone intervention” that introduces stringent capital requirements to guarantee the financial soundness of insurance operators while ushering in a new era of transparency, innovation and competitiveness.

According to him, NIIRA 2025 mandates the enforcement of compulsory insurance policies to improve consumer protection, establishes dedicated policyholder protection funds in case of insolvency and enforces zero tolerance for delays in claims settlement a chronic problem that has eroded public trust in the industry over the years.

The Act also makes digital transformation compulsory across the insurance ecosystem to allow for better access, improved service delivery and wider industry penetration. In addition, it expands Nigeria’s participation in cross-border insurance schemes such as the ECOWAS Brown Card system, which provides regional motor vehicle insurance coverage.

Onanuga said the National Insurance Commission (NAICOM) has been tasked with implementing the sweeping reforms, stressing that the new framework is expected to unlock fresh investments, protect policyholders and reposition Nigeria as a leading insurance hub in Africa.

“With the NIIRA 2025, the industry has been placed on a stronger footing and aligned with the Federal Government’s economic vision of building a $1 trillion economy,” the statement said, adding that the Act will significantly enhance public confidence while attracting both local and international stakeholders to the Nigerian insurance market.