Exclusive: Insurance Reform Bill gets Presidential approval, industry to recapitalize

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The much-anticipated Insurance Reform Bill, spearheaded by the Nigerian insurance industry, has finally received presidential assent.

Sources within the industry and close to the Presidency confirmed to Dailyeconomy that the Bill was approved on Friday, marking a significant milestone in efforts to transform the insurance sector in Nigeria.

While industry stakeholders await an official announcement through a formal press release from the Presidency, the development signals the beginning of a new era for insurance regulation and operations in the country.

Dailyeconomy had earlier reported in March that the House of Representatives passed the Nigerian Insurance Industry Reform Act Bill, 2025 (SB. 393), following its approval by the Senate in December 2024.

A key provision of the newly enacted law is the increase in minimum capital requirements across insurance categories.

The new thresholds are: Life insurance – from N2 billion to N10 billion; Non-life insurance – from N3 billion to N15 billion; Reinsurance – from N10 billion to N35 billion.

These adjustments mark the first major recapitalization since 2007 and are expected to drive significant improvements in insurance penetration, public trust, and overall industry competitiveness.

The new legislation repeals several outdated laws, including: The Insurance Act, Cap. I17, Laws of the Federation of Nigeria, 2004; The Marine Insurance Act, Cap. M3; The Motor Vehicle (Third Party) Insurance Act, Cap. M22; The National Insurance Corporation of Nigeria Act, Cap. N54; and The Nigerian Reinsurance Corporation Act, Cap. N131.

These have now been replaced by the Nigerian Insurance Industry Reform Act, 2025, which provides a comprehensive legal and regulatory framework for the insurance business in Nigeria.

Industry leaders describe the reform as a game changer that will reshape the landscape of insurance in the country and align it with international best practices.