Insurance operators across Nigeria have been urged to put clear plans and practical measures in place to ensure the smooth and successful implementation of the Nigeria Insurance Industry Reform Act 2025 as the industry moves into the new year. The call was made by the Chairman of the Nigerian Insurers Association (NIA), Mr Kunle Ahmed, in his New Year message to insurance companies and other stakeholders in the sector.
In a statement released at the start of 2026, Mr Ahmed said the new law, widely known as NIIRA 2025, has provided a stronger and more modern framework to improve insurance penetration in Nigeria, strengthen corporate governance, and support sustainable growth across the industry. He noted that the Act is expected to address long-standing challenges in the sector, including low public confidence, weak compliance, and limited access to insurance products by individuals and small businesses.
According to the NIA chairman, the focus for insurance operators in 2026 must now shift from legislation to execution. He said the real benefits of the Nigeria Insurance Industry Reform Act will only be felt if all players work together to implement its provisions fully and correctly. Mr Ahmed stressed that collaboration between insurance companies, regulators, brokers, agents and other stakeholders will be key to achieving the objectives of the reform.
He explained that the Nigerian Insurers Association is ready to play an active role in supporting its members during the transition period. According to him, the association will continue to engage government agencies and regulators through advocacy, provide technical guidance to member companies, and organise capacity-building programmes to help operators understand and comply with the new requirements of the law.
Mr Ahmed also revealed plans by the NIA to set up a recapitalisation help desk as part of its support structure. He said the help desk will assist insurance companies as they adjust to new capital requirements and other financial obligations introduced under the reform. The initiative, he explained, is aimed at ensuring that no serious operator is left behind during the implementation process and that the industry remains stable while reforms are being rolled out.
The NIA chairman expressed confidence that with cooperation, transparency and a shared sense of responsibility, the insurance industry can build on the progress recorded in 2025. He said the gains achieved last year, including improved engagement with regulators and better alignment among operators, provide a strong foundation for growth in 2026 and beyond.
Mr Ahmed also used the opportunity to appreciate insurance operators and industry workers for their commitment and resilience over the past year. He commended them for prioritising customer satisfaction despite economic pressures, rising operating costs and regulatory changes. According to him, the dedication of insurance professionals and their willingness to work together played a major role in the steady progress recorded by the association and the wider insurance industry.
He added that public trust remains a major issue in Nigeria’s insurance market and urged operators to continue improving service delivery, claims settlement and ethical standards. He said that building trust will help increase insurance adoption among Nigerians, especially in areas such as health insurance, motor insurance, agriculture insurance and microinsurance.
Industry analysts say the Nigeria Insurance Industry Reform Act 2025 is one of the most significant changes to the sector in recent years. The law is expected to modernise regulation, strengthen supervision, encourage consolidation where necessary and attract new investments into the insurance space. However, they also warn that effective implementation will determine whether the reforms achieve their intended impact.
As 2026 unfolds, stakeholders will be watching closely to see how insurance companies respond to the new legal framework and whether the promised reforms translate into better protection for policyholders and stronger financial performance for insurers. With the Nigerian economy facing ongoing challenges, experts believe a well-functioning insurance sector will play a critical role in supporting businesses, households and national development.
