Sen. Adetokunbo Abiru, Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, has applauded President Bola Tinubu’s assent to the Nigerian Insurance Industry Reform Bill (NIIRA), 2025.
Abiru (APC- Lagos East) gave the commendation in a statement on Wednesday in Lagos.
According to him, the assent marks a pivotal milestone in the collective efforts to reposition Nigeria’s financial services sector for inclusive growth and global competitiveness.
“I warmly commend President Bola Tinubu for graciously assenting to the Nigerian Insurance Industry Reform Bill, 2025, now enacted as the Nigerian Insurance Industry Reform Act (NIIRA), 2025.
“I am proud to affirm that the NIIRA 2025 represents one of the most comprehensive and far-reaching reforms in the history of Nigeria’s insurance industry.
“The Act repeals and consolidates outdated statutes, replacing them with a unified legal framework designed to foster innovation, strengthen regulatory oversight, and protect policyholders across the country.
“This reform is a key pillar in the legislative agenda of the 10th National Assembly and aligns seamlessly with the Federal Government’s vision of building a $1 trillion economy.
“It is also a testament to what is achievable when all arms of government work in concert to deliver on the Renewed Hope Agenda,” Abiru said.
According to Abiru, as the lead sponsor of the landmark legislation with all the committee members as co-sponsors, he was confident of the transformative provisions of the NIIRA Act.
He said that the new Act had repealed and replaced multiple outdated insurance enactments with a single, modern legal framework to ensure clarity, coherence, and regulatory efficiency.
The Senate Committee Chairman also said that Act also Introduced higher capital adequacy thresholds to strengthen the financial resilience and operational soundness of insurers and reinsurers.
According to him, it also establishes dedicated protection funds to safeguard policyholders’ interests in cases of insurer insolvency or failure.
Abiru said that the Act will also strengthen the enforcement of compulsory insurance policies like motor vehicle, public buildings, and workers’ compensation, to protect lives and property.
He said that it would also promote end-to-end digitisation of insurance operations, facilitating transparency, improved service delivery, and broader market access.
According to him, it mandates strict timelines for claims assessment and payment, with penalties for undue delays, to restore trust and accountability in the system.
He said that the Act also provides for Nigeria’s deeper participation in regional insurance systems such as the ECOWAS Brown Card Scheme, enhancing cross-border coverage and cooperation.
Abiru added that it will also empower the National Insurance Commission (NAICOM) with broader supervisory and enforcement powers to ensure compliance, innovation, and market discipline.
He acknowledged the collaborative support of the leadership of the Senate, the members of the Senate Committee on Banking, Insurance and Other Financial Institutions and other colleagues in both chambers of the National Assembly towards making the law a reality.
Abiru also applauded support from the Management of National Insurance Commission (NAICOM), and stakeholders across the insurance value chain who contributed to the successful passage of the piece of legislation.
“These reforms are not merely regulatory adjustments — they are strategic interventions aimed at unlocking the untapped potential of Nigeria’s insurance ecosystem, attracting investment, creating jobs, and deepening financial inclusion.
“The implementation phase now begins, and I am confident that with NAICOM’s renewed mandate, we will witness a significant leap in insurance penetration, investor confidence, and public trust.
“Together, we are laying the foundations for a safer, more resilient, and prosperous Nigeria,” he said.
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