The National Orientation Agency (NOA) says the recently signed Nigerian insurance industry reform bill is designed to strengthen citizens’ financial security and reduce the risk of unforeseen losses.
On August 5, President Bola Tinubu signed the Nigerian insurance industry reform bill 2025 into law.
The bill seeks to strengthen Nigeria’s financial sector and accelerate the nation’s march toward a $1 trillion economy.
In a recent explainer, NOA said the law “makes it mandatory for Nigerians to insure their vehicles, buildings, healthcare, pensions, and certain businesses”.
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The agency described the reform as a critical step toward deepening financial inclusion, expanding protection for households, and strengthening confidence in the financial system.
“The Act will serve as a regulatory framework for the insurance industry, outlining basic principles and empowering regulations and guidelines to strengthen Nigeria’s insurance sector and accelerate the nation’s march towards a $1 trillion economy,” NOA said.
“It will protect policyholders and stakeholders through timely, effective and proactive regulatory interventions; and promote discipline, ethical practices and sound market conduct across the insurance value chain.
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“Accelerate insurance penetration, public awareness, and inclusive sectoral growth; and facilitate job creation and support employment-driven initiatives within the insurance ecosystem.”
Speaking on the Act, Tokunbo Abiru, chairman of the senate committee on banking, insurance and other financial institutions, called it “a strategic intervention aimed at unlocking the untapped potential of Nigeria’s insurance ecosystem, attracting investment, creating jobs and deepening financial inclusion”.
Abiru said the Act is not just “regulatory adjustments” but rather “strategic interventions” deliberately crafted to evolve the insurance sector’s potential, attract investment, create jobs, and deepen financial inclusion.
“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,” he said.
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“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.”
Abiru added that with the Act, Nigeria is laying the foundations for a safer, more resilient, and prosperous country.
