Photo: Kritzolina, Wikimedia Commons, CC BY-SA 4.0NAICOM and the Nigerian Insurance Industry Reform Act 2025 (NIIRA)
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What NIIRA 2025 changed
- One law: it consolidates the Insurance Act 2003, the Marine Insurance Act, the Motor Vehicles (Third Party Insurance) Act, the NICON Act and the Nigeria Reinsurance Corporation Act (NAICOM).
- Capital: ₦10 billion (life), ₦15 billion (non-life), ₦25 billion (composite), ₦35 billion (reinsurance), and a move to risk-based capital; compliance by 30 July 2026 (circular).
- Third-party motor: higher property damage limit, government vehicles insured, road infrastructure covered, all passengers of commercial vehicles insured (NAICOM).
- Consumers: a consumer protection fund for policyholders if an insurer collapses; micro-insurance, takaful and agricultural insurance recognised; imprisonment for operating an unlicensed insurance business (same source).
- ECOWAS Brown Card: section 103 is the basis of the July 2026 directive that makes the card automatic (directive).
The market in figures (Q2 2026)
| Indicator | Figure |
|---|---|
| Gross premium written | ₦1,285.2 billion (+5.9% year on year) |
| Non-life share / life share | 66.2% / 33.8% |
| Largest non-life classes | Oil and gas 27.7%, fire 20.0%, motor 19.1% |
| Gross claims reported / net claims paid | ₦369.2 billion / ₦279.1 billion |
| Total assets of the sector | About ₦5.5 trillion (+25.6%) |
Source: NAICOM, Bulletin of the insurance market performance, Q2 2026. NAICOM put insurance penetration at 0.5% when NIIRA was signed (NAICOM).
Contact NAICOM
Head office: Plot 1239, Ladoke Akintola Boulevard, Garki II, Abuja; +234 (09) 133 923 456; info@naicom.gov.ng; Monday to Friday, 8 am to 4 pm. Lagos control office: Alagbon Street, off Ikoyi Road, lco@naicom.gov.ng (NAICOM). Complaints: how to complain.
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Frequently asked questions
What is NIIRA 2025?
The Nigerian Insurance Industry Reform Act 2025, signed on 31 July 2025. It replaced the Insurance Act 2003 and four other insurance laws, raised minimum capital and strengthened compulsory insurance and consumer protection.
Is the Insurance Act 2003 still in force?
No. NAICOM states that NIIRA 2025 repealed and consolidated the Insurance Act 2003 together with the Marine Insurance Act, the Motor Vehicles (Third Party Insurance) Act, the NICON Act and the Nigeria Reinsurance Corporation Act.
What does NAICOM do?
It supervises, regulates and licenses insurance companies, brokers and other operators, enforces insurance laws and protects policyholders (NAICOM FAQ).
Sources
- NAICOM — The dawn of a new era as President Bola Ahmed Tinubu signs the Nigerian Insurance Industry Reform Act 2025 into law (14 August 2025)
- NAICOM — Circular NAICOM/CFI/DCT/NIIRA2025-RECAP/001: implementation of the new minimum capital requirement prescribed by NIIRA 2025 (12 August 2025)
- NAICOM — NAICOM announces successful completion of the insurance sector recapitalization exercise (2 August 2026)
- NAICOM — Notice to the general public: additional seven insurance companies confirmed as compliant with the minimum capital requirements under NIIRA 2025 (13 August 2026)
- NAICOM — Directive NAICOM/TD/MCCB/MCP/INS/004: automatic issuance of ECOWAS Brown Cards for all motor insurance policies, section 103 of NIIRA 2025 (28 July 2026)
- NAICOM — Bulletin of the insurance market performance, second quarter 2026 (tables 1 and 5)
- NAICOM — Our offices nationwide (head office and zonal offices)
- NAICOM — Frequently asked questions (complaints, licence checks)