Nigeria’s President Bola Tinubu signed into law sweeping reforms to the insurance sector under the Insurance Industry Reform Act (NIIRA) 2025, his spokesperson said on Tuesday.
The new law consolidates decades-old legislation, introducing higher capital requirements, compulsory coverage mandates, and digitisation targets to modernise the sector.
Nigeria’s insurance penetration of less than 1% is among the lowest in Africa, far behind South Africa’s 13.7% and Kenya’s 2.14%, according to regulator data. Despite this, Gross Premium Written reached $1.9 billion by the end of 2023 and is projected to hit $7.84 billion by year-end, attracting global insurers like Sanlam and Allianz betting on long-term growth.
BY THE NUMBERS
The NIIRA Act mandates insurers to maintain minimum capital levels based on their risk profile:
Non-life insurers: 25 billion naira ($16.39 million)
Life insurers: 15 billion naira ($9.83 million)
Reinsurers: 45 billion naira ($29.49 million)
Firms failing to meet these thresholds could face mergers or acquisitions.
“The NIIRA Act 2025 ushers in a new era of transparency, innovation, and global competitiveness for the insurance industry. It aligns with the Federal Government’s vision of achieving a $1 trillion economy,” Bayo Onanuga, spokesperson for President Tinubu, said.
