President Bola Tinubu has just signed a major new law, the Nigerian Insurance Industry Reform Act (NIIRA) 2025. This new law replaces old insurance rules with a modern system that protects customers better, helps insurance companies grow stronger, and boosts investor confidence.

At United Capital, we believe this is an important step forward for Nigeria’s financial sector, and it could create new opportunities for individuals, businesses, and investors alike.

What’s Changing?

Here are some of the big things the NIIRA 2025 brings:

1. Customer Protection Fund
   A new fund will help protect insurance customers if a company runs into trouble and can’t pay claims.
2. Faster Claims Payments
   Insurance companies must now pay claims on time, with no more unnecessary delays.
3. Stronger Capital Requirements: Companies will need to meet new capital requirements, making them more reliable and better prepared to serve you.
4. More Mandatory Insurance
   The law expands the types of insurance that are compulsory, meaning more people and businesses will be covered.
5. Insurance Goes Digital
   Insurers are expected to use more technology to make services faster, easier, and more transparent for customers.
6. Regional Coverage
   Nigeria will better align with ECOWAS schemes such as the Brown Card System, allowing some policies to work across borders.

Why This Matters

These changes are meant to make insurance safer, simpler, and more trustworthy for everyone. It also makes Nigeria’s insurance industry more attractive to investors and helps grow the economy.

For investors, this could mean:

• More investment options as the insurance sector grows and becomes more active, perhaps new listings or capital raises within the sector
• Better performance from insurance-related stocks and businesses
• A stronger insurance sector supports long-term economic growth, and that benefits all investors.

Our View

We see the NIIRA 2025 as a positive shift for Nigeria’s economy. It brings more order to the insurance industry and supports the country’s goal of becoming a $1 trillion economy.

At United Capital, we are watching these developments closely, and we will continue to update you on what this means for your investments and financial plans.