Nigeria Aims to Boost Insurance Sector's Contribution to Economy with NIIRA 2025
Nigeria is hoping to strengthen the contribution of its insurance sector to the economy and improve the financial solidity of companies with the promulgation of the NIIRA 2025 law. In 2024, the market generated ₦1.562 trillion (approximately $1 billion), a 56% increase compared to 2023, but the country still lags behind African leaders such as South Africa, Morocco, and Egypt.
Non-life premiums accounted for ₦1.092 trillion, while life insurance premiums stood at ₦470 billion, and claims paid out reached ₦622 billion.
To achieve these objectives, the NIIRA 2025 modernizes the regulatory framework of the sector. It repeals the 2003 law and introduces new rules, including higher capital requirements to ensure the solidity of companies, mandatory policies to better protect consumers, and the digitalization of services to facilitate access to insurance via mobile. The law also provides for sanctions in case of delayed payment, the creation of guarantee funds to cover policyholders in case of bankruptcy, and increased participation in regional mechanisms such as the ECOWAS Brown Card.
The National Insurance Commission of Nigeria (NAICOM) will be responsible for implementing these measures. According to NAICOM, this reform offers the sector an opportunity to become more competitive at the regional and international levels, while attracting new investments.
