The House of Representatives has passed the Nigerian Insurance Industry Reform Act Bill, 2025 (SB. 393), marking a significant step in overhauling the country’s insurance sector.
The bill, presented by Hon. Julius Ihonvbere, who represents Owan Federal Constituency, seeks to repeal several existing laws, including:
- The Insurance Act, Cap. I 17, LFN 2004
- The Marine Insurance Act, Cap. M3, LFN 2004
- The Motor Vehicle (Third Party) Insurance Act, Cap. M22, LFN 2004
- The National Insurance Corporation of Nigeria Act, Cap. N54, LFN 2004
- The Nigerian Reinsurance Corporation Act, Cap. N131, LFN 2004
The proposed legislation aims to establish a comprehensive legal and regulatory framework for the insurance industry in Nigeria.
The bill follows the Senate’s December 2024 passage of the Nigerian Insurance Industry Reform Bill, which introduced major regulatory changes, particularly regarding capital requirements for insurance and reinsurance companies.
Under the new bill, the minimum capital base for:
- Life insurance companies increases from ₦2 billion to ₦10 billion
- Non-life insurance companies rises from ₦3 billion to ₦15 billion
- Reinsurance companies jumps from ₦10 billion to ₦35 billion
This marks the first major recapitalization exercise since 2007, ensuring a more robust financial base for insurance operators and strengthening the industry’s regulatory oversight.
