FG Backs NIIRA 2025 Implementation, Sets July 2026 Recapitalization Deadline

By Oluwakemi Kindness

The Federal Government has reaffirmed its commitment to the full implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, as part of sweeping reforms to reposition Nigeria’s insurance sector for growth, innovation, and global competitiveness.

Declaring open the 2025 Insurance Directors’ Conference in Lagos on Wednesday, the Minister of State for Finance, Doris Uzoka-Anite, described NIIRA 2025 as “a landmark initiative and a national mission” that aligns with President Bola Tinubu’s economic transformation agenda.

“NIIRA 2025 is not just an Act; it is a reform framework — a mission to rebuild trust, restore relevance, and redefine the place of insurance in our economy and daily lives,” Uzoka-Anite said.

The Minister commended the National Insurance Commission (NAICOM) and the College of Insurance and Financial Management (CIFM) for sustaining the annual directors’ conference, noting that the platform has become central to policy dialogue, governance improvement, and sectoral innovation.

She urged insurance directors and company boards to “demonstrate courage, foresight, and accountability” in driving the NIIRA 2025 reforms, stressing that leadership and integrity must be embedded in every organisation’s culture.

Uzoka-Anite revealed that the Ministry of Finance is working closely with NAICOM to strengthen the insurance sector’s linkages with the broader financial system through: Enhanced capital market connections,

Review of solvency frameworks, Tax incentives and digital sandboxes to promote InsurTech innovation, and Inter-agency collaboration with CBN, SEC, CAC, FRSC, and NDPC.

“These measures will position insurance as a key pillar of Nigeria’s financial ecosystem — one that protects citizens, empowers businesses, and supports national development,” she noted.

The Minister emphasised that public trust remains the foundation of the industry’s growth.

“Without trust, even the most innovative products will fail,” she warned, calling for transparency, professionalism, and prompt claims payment.

She backed NAICOM’s continued enforcement of compulsory insurance policies — such as third-party motor and building insurance — and encouraged insurers to design inclusive products for farmers, artisans, transport workers, and micro-enterprises.

“The future of insurance lies in reaching those who have been left out for too long,” Uzoka-Anite added.

Speaking at the same event, Commissioner for Insurance and Chief Executive Officer of NAICOM, Olusegun Ayo Omosehin, announced that all insurance and reinsurance companies have until July 31, 2026 to complete their recapitalisation exercise under NIIRA 2025.

The process, which began after President Tinubu signed the Act on July 31, 2025, aims to strengthen financial stability, solvency, and investor confidence in the industry.

“Institutions submitted their recapitalisation plans by the September 30 deadline. The Commission has completed its review and will soon communicate official feedback and guidance to each company,” Omosehin said.

He added that a dedicated NAICOM committee is developing a roadmap, issuing guidelines, and recommending incentives to ensure a smooth implementation.

Omosehin outlined the Commission’s reform priorities under NIIRA 2025 to include: Digital Transformation: Creation of a centralised insurance database for real-time policy verification.

Consumer Protection: Faster claims settlement and stricter sanctions for misconduct.

Data Protection & Cybersecurity: Partnership with the Nigerian Data Protection Commission (NDPC) to safeguard information.

Enforcement of Compulsory Insurance: Collaboration with FRSC, Nigeria Police, and State Governments to boost compliance.

Innovation & Inclusion: Support for InsurTech and other digital solutions to make insurance affordable and accessible.

“These reforms are designed to ensure that regulation becomes a tool for growth, not a bottleneck,” the NAICOM boss stated.

Omosehin charged insurance directors to drive reform implementation through good governance and innovation.

“Boards must be proactive, inquisitive, and courageous. Good governance is not just a regulatory expectation — it is a moral duty,” he said, adding that trust and transparency are non-negotiable for sustainable growth.

Both the Minister and the NAICOM Commissioner agreed that insurance must move from the margins to the mainstream of Nigeria’s economic planning.

They emphasised the role of insurance in providing long-term capital, managing climate risk, financing infrastructure, and stabilising communities.

“Insurance is not a peripheral service; it is a strategic pillar of national progress,” Omosehin stressed.

A Shared Call to Action:

Closing his remarks, Omosehin invoked an African proverb to drive home the urgency of reform:

“The right time to plant a tree was twenty years ago. The next best time is now.”

He urged all stakeholders to embrace unity of purpose, innovation, and accountability in building a resilient, inclusive, and globally competitive insurance industry for Nigeria.