By Isaac Anyaogu
LAGOS (Reuters) -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.
WHY IT’S IMPORTANT
The new law consolidates decades-old legislation, introducing higher capital requirements, compulsory coverage mandates, and digitisation targets to modernise the sector.
CONTEXT
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.
KEY QUOTE
“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.
($1 = 1,525.7300 naira)
(Reporting by Isaac Anyaogu; Editing by David Holmes)
