Sen. Adetokunbo Abiru (APC -Lagos) has commended President Bola Tinubu for assenting to the Nigerian Insurance Industry Reform Bill, 2025, now enacted as the Nigerian Insurance Industry Reform Act (NIIRA), 2025.
Abiru, who is the Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions made the commendation in a statement on Wednesday in Abuja.
He said the act would further help boost the economy in line with the renewed hope policies and programmes of the Federal Government, especially in the insurance sector.
“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.
“This marks a pivotal milestone in our collective efforts to reposition Nigeria’s financial services sector for inclusive growth and global competitiveness.”
Abiru said he was proud to affirm that the NIIRA 2025 represented one of the most comprehensive and far-reaching reforms in the history of Nigeria’s insurance industry.
He said the act repealed and consolidated outdated statutes, replacing them with a unified legal framework designed to foster innovation, strengthen regulatory oversight, and protect policyholders across the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 one trillion dollar 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, ” he said.
He said the transformative provisions of the NIIRA included the repeals and replacing of multiple outdated insurance enactments with a single, modern legal framework to ensure clarity, coherence, and regulatory efficiency.
According to him, the act introduces higher capital adequacy thresholds to strengthen the financial resilience and operational soundness of insurers and reinsurers.
“It establishes dedicated protection funds to safeguard policyholders’ interests in cases of insurer insolvency or failure.
“It strengthens the enforcement of compulsory insurance policies like motor vehicle, public buildings, and workers’ compensation to protect lives and property, ” the senator said.
Abiru said the new act would promote end-to-end digitisation of insurance operations, facilitating transparency, improved service delivery, and broader market access.
According to him, the act mandates strict timelines for claims assessment and payment, with penalties for undue delays, to restore trust and accountability in the system.
” It provides for Nigeria’s deeper participation in regional insurance systems such as the ECOWAS Brown Card Scheme, enhancing cross-border coverage and cooperation.
“It empowers the National Insurance Commission (NAICOM) with broader supervisory and enforcement powers to ensure compliance, innovation, and market discipline.”
He said the reforms were not merely regulatory adjustments but strategic interventions aimed at unlocking the untapped potential of Nigeria’s insurance ecosystem, attracting investment, creating jobs, and deepening financial inclusion.
He said that the implementation phase of the new act began immediately.
He said there would be a significant leap in insurance penetration, investor confidence, and public trust, given the renewed mandate of NAICOM.
He said the nation was laying foundations for a safer, more resilient, and prosperous Nigeria.
Abiru acknowledged and commended the collaborative support of the leadership of the senate, committee members and law makers in both chambers of the national assembly,
Abiru also commended management of NAICOM and stakeholders across the insurance value chain that contributed to the successful passage of the legislation.(NAN)(www.nannews ng)
