Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Mukhail Adetokunbo Abiru, has hailed the presidential assent to the Nigerian Insurance Industry Reform Bill, describing it as a “bold leap into a modern and inclusive financial future.”

President Bola Ahmed Tinubu, GCFR, on Tuesday signed the much-anticipated Nigerian Insurance Industry Reform Act (NIIRA), 2025, into law, signalling the dawn of a new era for the nation’s insurance sector.

In a statement released shortly after the announcement, Senator Abiru, the lead sponsor of the bill, said the Act represents one of the most comprehensive overhauls in the history of Nigeria’s financial services. According to him, the NIIRA replaces a patchwork of outdated laws with a single, robust legal framework aimed at boosting investor confidence, deepening policyholder protection, and positioning Nigeria as a competitive insurance hub in Africa.

“This reform is not just a legislative milestone; it is a game-changer,” Abiru said. “It aligns perfectly with the Federal Government’s ambition of building a $1 trillion economy and is a critical step toward achieving broader financial inclusion under the Renewed Hope Agenda.”

Key highlights of the NIIRA include: Repealing and consolidating decades-old insurance laws into one modern Act; Raising capital requirements to strengthen insurers’ financial stability; Establishing protection funds to secure policyholders in case of insurer collapse; Enforcing compulsory insurance coverage across key sectors; and Mandating timely claims processing and payment with strict penalties for delays.

Others, according to him, are driving digital transformation in insurance operations; Deepening Nigeria’s role in regional insurance frameworks like the ECOWAS Brown Card Scheme, and empowering NAICOM with stronger oversight and enforcement powers.

Senator Abiru expressed confidence that the new law would unlock unprecedented opportunities across the insurance value chain, attract foreign and domestic investment, create jobs, and restore public trust in the system.

He also thanked his fellow lawmakers in the 10th National Assembly, the leadership of the Senate, the management of NAICOM, and stakeholders across the sector for their collaboration and support.

“The work doesn’t end here,” he noted. “Implementation is now key, and with NAICOM’s renewed mandate, we can look forward to meaningful change on the ground — from urban centres to rural communities.”

With the NIIRA now in force, Nigeria is set to transition from an underperforming insurance market to one driven by innovation, resilience, and accountability.