Insurance Stocks Soar 10% on NGX as Tinubu Signs Nigerian Insurance Industry Reform Act 2025

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Insurance stocks surged by 10% on the Nigerian Exchange Limited (NGX) after President Bola Tinubu signed the Nigerian Insurance Industry Reform Act (NIIRA) 2025 into law on August 5, 2025.

The sweeping reform mandates a major recapitalization of the sector, with minimum capital requirements for life insurers rising from ₦2 billion to between ₦10–15 billion, non-life insurers from ₦3 billion to ₦15–25 billion, and reinsurers from ₦10 billion to ₦35–45 billion. The move is designed to strengthen financial stability, attract fresh investment, and boost insurance penetration across Nigeria, sparking renewed investor confidence.

The NIIRA repeals and consolidates outdated insurance legislation into a single, modern framework, granting the National Insurance Commission (NAICOM) enhanced powers to regulate and supervise the industry. Key provisions include compulsory insurance enforcement, digitization of services, zero tolerance for delayed claims, and stricter oversight to ensure financial soundness and protect consumers.

NAICOM is expected to set deadlines for recapitalization, a development likely to trigger mergers, acquisitions, or public fundraising by insurers aiming to meet the new thresholds.

This landmark legislation forms part of the government’s Renewed Hope Agenda, which targets economic growth, increased investor trust, and a stronger financial services sector.