Some of the transformative provisions of the NIIRA include the following:
Repeals and replaces multiple outdated insurance enactments with a single, modern legal framework to ensure clarity, coherence, and regulatory efficiency.
Introduces higher capital adequacy thresholds to strengthen the financial resilience and operational soundness of insurers and reinsurers.
Establishes dedicated protection funds to safeguard policyholders’ interests in cases of insurer insolvency or failure.
Strengthens the enforcement of compulsory insurance policies (e.g. motor vehicle, public buildings, and workers' compensation) to protect lives and property.
Promotes end-to-end digitisation of insurance operations, facilitating transparency, improved service delivery, and broader market access.
Mandates strict timelines for claims assessment and payment, with penalties for undue delays, to restore trust and accountability in the system.
Provides for Nigeria’s deeper participation in regional insurance systems such as the ECOWAS Brown Card Scheme, enhancing cross-border coverage and cooperation.
Empowers the National Insurance Commission (NAICOM) with broader supervisory and enforcement powers to ensure compliance, innovation, and market discipline. 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.
I wish to acknowledge the collaborative support of the leadership of the Senate, the members of the Senate Committee on Banking, Insurance and Other Financial Institutions, my other colleagues in both chambers of the National Assembly, the Management of National Insurance Commission (NAICOM), and stakeholders across the insurance value chain who contributed to the successful passage of this important legislation.
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.
