President Tinubu Signs Landmark Insurance Reform Act to Modernize Nigeria’s Industry

President Bola Tinubu has signed the Nigerian Insurance Industry Reform Act into law, ushering in a new era for the country’s insurance sector.

The legislation which repeals and replaces a patchwork of older regulations introduces a raft of reforms aimed at strengthening the industry, protecting consumers and encouraging economic growth.

Key provisions of the new law include stricter capital requirements for insurers, compulsory range insurance for a broader array of sectors, and a mandate for full digitization across the insurance market. Regulators and industry stakeholders say these changes will bring Nigerian insurance standards in line with global best practices reduce systemic risks and promote transparency.

According to officials, the higher capital thresholds are designed to ensure that insurance firms can withstand financial shocks while compulsory range insurance will deepen coverage in areas previously excluded or underinsured.

The digitization requirement aims to modernize operations, making it easier for the public to access insurance products and file claims through digital platforms.

Industry experts predict that the reforms will boost investor confidence and attract both local and foreign investment into the insurance market. Consumer advocacy groups have welcomed the added protections, citing enhanced dispute resolution mechanisms and stricter oversight as critical wins for policyholders.

President Tinubu, speaking at the signing ceremony in Abuja, described the Act as a milestone for Nigeria’s financial services sector and pledged continued support for reforms that make the nation’s economy more resilient and inclusive.

The Nigerian Insurance Industry Reform Act takes effect immediately, with regulatory bodies expected to roll out implementation guidelines in the coming weeks.