The Centre for Credible Reforms and Institutional Accountability (CCRIA) has expressed support for reforms being implemented by the National Insurance Commission (NAICOM), urging the regulator to sustain transparency, policyholder protection and consistent implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

President of the centre, Dr Aminu Abubakar Aminu, made the call in a statement at the weekend, in which the organisation also commended the Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Ayo Omosehin.

Aminu said the new insurance legislation provided an opportunity to address longstanding regulatory and structural challenges in the industry.

President Bola Tinubu signed NIIRA 2025 into law last year, replacing and consolidating several pieces of legislation governing Nigeria’s insurance industry.

Among other provisions, the legislation strengthened the regulatory framework, introduced revised minimum capital requirements and provided measures aimed at protecting policyholders and improving financial stability in the sector.

“The enactment of the Nigerian Insurance Industry Reform Act is a significant milestone in the development of Nigeria’s insurance sector,” Aminu said.

“We commend Mr President and the National Assembly for recognising the need to modernise the legal and regulatory framework governing the industry.

“NIIRA provides the foundation for an insurance sector that is better capitalised, more accountable, more responsive to policyholders and better equipped to contribute meaningfully to the Nigerian economy.”

The centre also commended Omosehin’s leadership of NAICOM and called for continued engagement between the regulator and industry operators as implementation of the legislation progresses.

“We consider the appointment of Mr Olusegun Ayo Omosehin as Commissioner for Insurance and Chief Executive Officer of NAICOM a timely and appropriate decision,” Aminu said.

“He is a seasoned insurance professional with many years of experience in the industry, and his understanding of the sector gives him the practical knowledge required to lead an important reform process of this nature.”

One of the most consequential elements of the reforms has been the recapitalisation of insurance and reinsurance companies.

Under NIIRA 2025, minimum capital requirements were increased to ₦10 billion for life insurance companies, ₦15 billion for non-life insurers and ₦35 billion for reinsurance companies.

NAICOM announced in August that the 12-month recapitalisation exercise had been completed, with 43 insurance and reinsurance companies meeting the prescribed minimum capital requirements at the time of the announcement.

Eight other companies that submitted evidence shortly before the statutory deadline were undergoing final verification and regulatory review.

The regulator said the exercise was intended to strengthen insurers’ financial resilience and their capacity to meet obligations to policyholders, while providing a stronger foundation for risk-based supervision.

Aminu said the reforms should now be sustained through consistent implementation.

“The early developments under NIIRA demonstrate that the reform is not merely a legislative exercise but a process capable of producing measurable improvements in the industry,” he said.

“Stronger capital requirements, improved supervision and greater attention to policyholder protection will ultimately create an insurance market that Nigerians can trust.”

He urged NAICOM to continue providing clear guidance to operators and other stakeholders as the industry moves beyond recapitalisation towards implementation of other provisions of the legislation.

The centre said greater protection for policyholders should remain central to the reform programme, arguing that public confidence would be important to efforts to deepen insurance penetration in Nigeria.

NIIRA identifies protection of policyholders, prospective policyholders and other stakeholders as one of the objectives of the regulatory framework.

The legislation has also provided for mechanisms including the Insurance Policyholders Protection Fund, designed to provide protection in circumstances involving distressed or insolvent insurers.

Aminu said consumers should be able to buy insurance products with confidence that licensed operators have sufficient financial and institutional capacity to meet legitimate obligations.

The centre urged insurance companies, brokers, reinsurers, professional bodies and other industry stakeholders to cooperate with NAICOM in implementing the legislation.

“The success of NIIRA will require the cooperation of every stakeholder in the insurance ecosystem,” Aminu said.

“Operators must see the reforms as an opportunity to strengthen their institutions, improve their services and regain the confidence of Nigerians.”

He added that a stronger insurance industry could help protect households and businesses against risks while contributing long-term capital to the economy.

The CCRIA president urged NAICOM to maintain engagement with stakeholders and ensure that regulatory requirements are implemented consistently.

“What is required at this stage is continuity, professionalism and commitment to the objectives of the law,” he said.

“The reforms must be sustained beyond the initial implementation period so that the gains can become permanent features of the industry.”

The centre said effective implementation of NIIRA could improve consumer confidence and strengthen the industry’s contribution to economic activity, while calling for continued collaboration among regulators, operators and professional bodies.