L-R: Head of Operations, Parthian Pensions Limited, Mr. Adetunbi Ashaye; Group Deputy Managing Director, Afrinvest, Victor Ndukauba; Managing Director/CEO, Rex Insurance Ltd, Mrs. Ebelechukwu Nwachukwu; immediate past Commissioner for Insurance and Chairman of the occasion, Olorundare Sunday Thomas; Chairperson, Nigerian Association of Insurance and Pension Editors (NAIPE), Nkechi Naeche-Esezobor; Director, Legal, Enforcement and Market Development, NAICOM, Talmiz Usman and Head, Corporate Communications, National Pension Commission (PenCom), Mr. Ibrahim Buwai, during the 2025 NAIPE annual conference/10th anniversary, themed ‘Strengthening Insurance and Pension Frameworks for Better Economy,’ in Lagos, on Tuesday.
By LOVETH AZODO, Lagos
Industry stakeholders have hailed the Nigerian Insurance Industry Reform Act (NIIRA) 2025 as a transformative law that could reposition the sector as a key driver of the nation’s economic growth.
The Act, signed into law by President Bola Tinubu in July, is expected to deepen penetration, enhance stability, and expand the insurance industry’s contribution to Nigeria’s Gross Domestic Product (GDP).
Speaking at the 10th annual conference of the Nigerian Association of Insurance and Pension Editors (NAIPE), Commissioner for Insurance and CEO of the National Insurance Commission (NAICOM), Mr. Olusegun Omosehin, said the law introduces two key frameworks minimum capital requirements and risk-based capital thresholds designed to strengthen operators’ financial muscle.
With new requirements of N10 billion for Life insurers, N15 billion for Non-Life, and N35 billion for Reinsurance, Omosehin explained that companies will now have greater capacity to retain risks locally, boost employment, and stimulate economic growth.
“The second layer, the risk-based capital, ensures operators provide capital that matches their exposure. This builds confidence that insurers writing certain businesses have the financial strength to meet obligations,” said Dr. Tamis Usman, NAICOM’s Director of Legal, Enforcement, and Market Development, who represented the Commissioner.
Experts also noted that the NIIRA 2025 seeks to build public trust by simplifying insurance processes.
Policies must now be issued in plain language before commencement, while proposal forms are required to be straightforward enough for consumers to understand.
This, according to NAICOM, will strengthen transparency and improve claims settlement.
In her remarks, Director-General of the Nigerian Insurers Association (NIA), Mrs. Bola Odukale, pledged that operators will work to ensure strict implementation.
“One thing is to have a law; another is to see it implemented. We are committed to self-regulation, awareness creation, and timely claims payment, which are critical to restoring public confidence in the industry,” she said.
Odukale also highlighted opportunities embedded in compulsory insurance provisions, such as cover for tankers, petrol stations, buildings under construction, and imported containers.
On his part, Executive Director of emPLE Life Assurance, Mr. Makanjuola Tubi, stressed the importance of capturing value from the reforms by expanding access to underserved segments.
He noted that with the informal sector accounting for about 60 percent of GDP, the industry must design innovative products that reach excluded populations to unlock its full economic potential.
Stakeholders at the conference agreed that if well implemented, NIIRA 2025 could reposition insurance and pensions as critical pillars of Nigeria’s vision to build a $1 trillion economy.
News6 days ago
News6 days ago