Tinubu Signs NIIRA 2025: Tough Penalties for Unlicensed Insurance Businesses
President Bola Tinubu has signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025, introducing stringent penalties for unlicensed insurance businesses. The Act aims to clean up the industry and boost its contribution to Nigeria's economy.
Under the new law, individuals running unlicensed insurance businesses face fines of N25 million and up to two years in prison. Firms risk penalties of N50 million for each principal officer involved. To qualify as an insurance agent, applicants must demonstrate professional competence and credibility, such as holding a relevant certificate or having at least ten years of experience. Unlicensed agents face a six-month jail term and firms working with them risk penalties of up to five times the premium collected. The Act also provides for the creation of policyholder protection funds to safeguard consumers in case of insolvency. Other reforms include stricter capital requirements, compulsory insurance coverage, digitization, and timely claim settlement.
The NIIRA 2025, with its tough penalties and industry-wide reforms, signals the government's commitment to modernizing Nigeria's insurance sector. This move is seen as a key step towards unlocking the sector's full potential and aligning it with Nigeria's ambition of becoming a $1 trillion economy.
