The House of Representatives has passed the Nigerian Insurance Industry Reform Act Bill, 2025, following in the footsteps of the Senate that did so in December 2024. The vote last week took the Bill one step closer to being signed into law.
The Bill provides a comprehensive legal and regulatory framework to strengthen insurance operations in Nigeria. It repeals several scattered insurance-related laws, including the Insurance Act; the Marine Insurance Act; the Motor Vehicle (Third Party) Insurance Act; the National Insurance Corporation of Nigeria Act; and the Nigerian Insurance Reinsurance Corporation Act.
Among its various stipulations, the new law states that only licensed insurers and reinsurers can operate in Nigeria. Prospective insurers must apply for licensing by the National Insurance Commission (NAICOM).
Under the approved Bill, insurers will see new capital requirements. Non-life insurance companies must have a minimum capital of NGN15bn ($9.7m), while life insurers must have at least NGN10bn. Reinsurance companies have a minimum capital requirement of NGN35bn. These are increased from NGN3bn, NGN2bn and NGN10bn respectively, which have been in effect since 2007.