Lawmakers pass Insurance Industry Reform Bill

The House of Representatives passed the Nigerian Insurance Industry Reform Act Bill, 2025 (SB. 393) yesterday.

According to the House of Representatives’ release of the Order Paper, Office of the House Spokesman yesterday, Hon. Julius Ihonvbere, representing Owan Federal Constituency, presented the bill.

Part of the day’s bills was the bill for an Act to repeal the Insurance Act, Cap. I 17, Laws of the Federation of Nigeria, 2004; the Marine Insurance Act, Cap. M3, Laws of the Federation of Nigeria, 2004; the Motor Vehicle (Third Party) Insurance Act, Cap. M22, Laws of the Federation of Nigeria, 2004; the National Insurance Corporation of Nigeria Act, Cap. N54, Laws of the Federation of Nigeria, 2004; the Nigerian Reinsurance Corporation Act, Cap. N131, Laws of the Federation of Nigeria, 2004, and enact the Nigerian Insurance Industry Reform Act, 2025 to provide for a comprehensive legal and regulatory framework for insurance business in Nigeria and for related matters (SB. 393).

In December 2024, the Senate passed the 2024 Nigerian Insurance Industry Reform Bill, marking a major move for the insurance and reinsurance companies to get a new operating capital base.

This Bill, which comprises many regulations to transform different aspects of the Nigerian insurance industry, followed the adoption of the report by the Committee on Banking, Insurance, and Other Financial Institutions.

The minimum capitals required for life, non-life, and reinsurance businesses were raised to N10bn, N15bn, and N35bn, respectively, from previous capitals of N2bn, N3bn, and N10bn, which operators had worked with since the last recapitalization exercise in 2007.

By: Bankole Orimisan