August 21, 2025
By Ayinde Adeleke
The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Olusegun Ayo Omosehin, has described the newly signed Nigerian Insurance Industry Reform Act 2025 (NIIRA 2025) as a โgame-changerโ for the nationโs financial sector.
Speaking after President Bola Tinubu assented to the law, Omosehin said the Act provides a modernized regulatory framework that will enhance insurance penetration, attract new investments, and protect policyholders while boosting Nigeriaโs ambition of building a $1 trillion economy.
Key provisions of the law include the introduction of risk-based capital requirements, expansion of compulsory insurance policies, digitalization of insurance operations, and strengthened enforcement powers for NAICOM.
Following the signing of the Act, NAICOM inaugurated a Recapitalisation Committee to oversee compliance with new Minimum Capital Requirements (MCRs), set at โฆ10 billion for life insurers, โฆ15 billion for non-life insurers, โฆ25 billion for composite firms, and โฆ35 billion for reinsurers. Companies are expected to comply by July 30, 2026.
Omosehin noted that the reform marks the beginning of a new era for Nigeriaโs insurance industry, stressing that it is designed to instill market confidence, encourage innovation, and position the sector as a major contributor to national growth.
โThis Act is a win-win for operators and policyholders. It lays a solid foundation for a stronger, more resilient, and competitive insurance industry,โ he said.