Insurance Reform Bill Awaits Tinubu’s Nod as Industry Watches Closely

After more than a decade of delays and legislative bottlenecks, Nigeria’s long-anticipated Insurance Sector Reform Bill has finally reached President Bola Tinubu’s desk for assent. Industry stakeholders, who have long called for modernization in the sector, are now anxiously awaiting the president’s decision, fearing another setback after previous disappointments.

The bill, originally proposed in 2010, languished in legislative limbo for years. Under former President Muhammadu Buhari’s administration, the Consolidated Insurance Bill was not signed, leaving insurers and regulators grappling with outdated policies that stifled growth. Now, there is cautious optimism that the Tinubu-led government will take a decisive step toward reform.

A Call for Urgency

A stakeholder, has urged industry players to maintain pressure to ensure swift presidential approval.

“We cannot afford another delay. Insurers and regulators must push harder to ensure the president signs this bill into law,” he emphasized.

Similarly, Commissioner for Insurance and CEO of the National Insurance Commission (NAICOM), Olusegun Omosehin, recently described the bill’s passage through the legislative process as a “landmark achievement”, underscoring its potential to transform the sector.

Key Provisions of the Reform Bill

The proposed legislation introduces significantly higher capital requirements aimed at strengthening the financial capacity of insurance firms:

• Non-life insurance firms: N25 billion
• Life insurance firms: N15 billion
• Reinsurance firms: N35 billion

These new thresholds are expected to bolster the industry’s resilience and credibility, positioning Nigerian insurers to compete more effectively on a global scale.

Challenges Beyond Assent

Despite the optimism surrounding the bill’s potential signing, experts warn that implementation will be the real test. An investor and analyst in the capital market, raised concerns about compliance and the government’s commitment to supporting local insurers.

“The real challenge isn’t just passing the bill but ensuring compliance. Will the government even insure its own assets with local firms?” he questioned.

With heightened expectations from industry players, investors, and regulators, calls for strategic lobbying have intensified. The insurance community remains on edge, with many asking: How much longer must we wait for this long-overdue reform to take effect?

As the bill’s fate now rests in the hands of President Tinubu, stakeholders hope his administration will break the cycle of delays and usher in a new era for Nigeria’s insurance industry. Until then, the industry remains in suspense, caught between hope and uncertainty.

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