NIGERIA INSURANCE INDUSTRY REFORM ACT(NIIRA)
Act · Finance
Policy date: 2025-01-01
An Act that modernizes Nigeria's insurance industry by consolidating laws and enhancing regulation. It targets insurance companies, intermediaries, and consumers to ensure transparency and consumer protection. This drives innovation and makes the sector more competitive.
What Is This Policy?
NIIRA 2025 is Nigeria’s new master law for insurance, designed to modernize the industry, protect consumers, and make insurance more transparent, digital, and growth-oriented.
Who Does It Target?
NIIRA targets insurance companies, intermediaries, regulators, and consumers making sure the industry is well-regulated, trustworthy, and aligned with Nigeria’s economic growth goals.
What Does It Aim to Achieve?
It aims to modernize Nigeria’s insurance industry, protect consumers, strengthen regulation, and drive innovation making the sector more competitive and resilient.
Key Features
Comprehensive Legal Framework: consolidates and modernizes all insurance laws into a single statute, repealing the outdated Insurance Act (2003) Classification of Insurance Business: Clearly defines categories of insurance (life, non-life, reinsurance, intermediaries) and restricts the use of terms like “insurance” or “underwriter” to licensed entities. Licensing & Operations: Introduces stricter licensing conditions, specialization requirements, and rules for rejection or cancellation of licenses. It also regulates holding companies and principal officers. Capital Requirements: Establishes new minimum capital adequacy standards to address under-capitalization and ensure financial stability.
Current Status
Rollout Stage: active, in its initial stage Coverage: applies nationwide Funding: funded through federal government allocations to NAICOM and the insurance sector
How to Access
Federal Government Gazette Legal & Regulatory Portals
Important Terms
Term 1- Classification of Insurance Business: Defines categories (life, non-life, reinsurance, intermediaries) and restricts the use of terms like “insurance” or “underwriter” to licensed entities. Term 2- Licensing & Operation of Insurers: Sets conditions for licensing, specialization, rejection or cancellation of licenses, regulation of holding companies, and rules for appointing principal officers.
Official Resources
Website https://naicom.gov.ng • Federal Government Gazette: • Federal Ministry of Finance: Oversees financial sector reforms and may publish supporting documents related to NIIRA: https://finance.gov.ng. 📞 Contact Information • National Insurance Commission (NAICOM): • Address: Plot 1239, Ladoke Akintola Boulevard, Garki II, Abuja, Nigeria • Phone: +234 (0) 9 460 2970 • Email: [email protected]
Legal Framework
The Nigeria Insurance Industry Reform Act (NIIRA) 2025 is the primary insurance legislation, superseding the Insurance Act 2003 and consolidating related statutes. It operates under the 1999 Constitution (Second Schedule — insurance on the Exclusive Legislative List), the Central Bank of Nigeria Act 2007, and the Investments and Securities Act 2024. International alignment is with the International Association of Insurance Supervisors (IAIS) Insurance Core Principles and the OECD Insurance and Private Pensions Committee standards.