Experts expect to see considerable mergers and acquisitions within the industry, although there is strong optimism that many of the 55 insurance companies operating now may scale the recapitalisation hurdle.
President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform (NIIRA) 2025 Bill into law, triggering a wave of expected mergers and acquisitions in the sector. The reform overhauls outdated legislation and hikes capital thresholds significantly. It raises minimum capital for life insurers from N2 billion to N10 billion, non-life insurers from N3 billion to N15 billion, and reinsurers from N10 billion to N35 billion.
The Presidency has directed NAICOM to implement the Act in ways that unlock the industry’s potential and boost insurance participation nationwide. Experts anticipate consolidation among the current 55 operators, though many are believed capable of meeting the new requirements on their own.
In a statement, the Presidency said: “This development reaffirms the administration’s commitment to financial stability, economic development, and inclusive growth.” The Act also mandates market digitisation, strict claims timelines, policyholder protection funds, and participation in regional insurance schemes.
Industry leaders have welcomed the changes. Tope Adaramola, CEO of the Council of Insurance Brokers, said the Act would address long‐standing weaknesses and unlock the sector’s full potential.