In a defining moment for Nigeria’s financial services sector, industry leaders, legislators, and regulators gathered in Maiduguri for the 2025 Stakeholders’ Retreat of the House Committee on Insurance and Actuarial Matters, themed “Navigating the New Era of Insurance Regulation – Understanding the Nigerian Insurance Industry Reform Act (NIIRA) 2025.”
The retreat, jointly organized by the House of Representatives Committee on Insurance and Actuarial Matters in collaboration with the National Insurance Commission (NAICOM), brought together top policymakers, operators, and thought leaders to chart the course for the implementation of the landmark NIIRA 2025.
Declaring the event open, Mr. Olusegun Ayo Omosehin, the Commissioner for Insurance and Chief Executive Officer of NAICOM, set the tone with a powerful call to action — urging all stakeholders to embrace the new law as a catalyst for modernization, inclusivity, and sustainable growth in Nigeria’s insurance industry.
“This reform is not merely about regulatory control,” Omosehin stated in his opening remarks. “NIIRA 2025 represents a paradigm shift — one that reimagines the role of insurance in national development, economic resilience, and the wellbeing of every Nigerian household.”
Honouring Borno’s Resilience and the Role of Leadership
Omosehin commended His Excellency, Professor Babagana Umara Zulum, Governor of Borno State, for his visionary leadership in driving reconstruction, improving healthcare, and expanding access to social services.
“Maiduguri is not just a venue — it is a symbol of resilience and renewal,” Omosehin remarked. “NAICOM stands ready to partner with the Borno State Government to extend insurance protection to public assets and support agricultural resilience across the state.”
He also praised Hon. Ahmadu Usman Jaha, Chairman of the House Committee on Insurance and Actuarial Matters, for his instrumental role in advancing the passage of the NIIRA 2025, which replaces outdated laws and introduces a unified regulatory framework for Nigeria’s insurance ecosystem.
Agricultural Insurance: Strengthening Food Security and Livelihoods
A key highlight of the retreat was the renewed focus on agricultural insurance. Omosehin emphasized that agriculture remains the backbone of Nigeria’s economy but is also one of its most vulnerable sectors — exposed to floods, droughts, pests, and market disruptions.
He revealed that under federal and private initiatives, over 1.47 million smallholder farmers have been covered under agricultural insurance programs, with a target to reach 3.6 million by 2026. In the second quarter of 2025 alone, 250,000 farmers across eight states were insured under government-backed schemes.
Recent data showed tangible benefits: insured rice farmers in North Central Nigeria recorded 11% higher productivity, averaging 20 bags per hectare compared to 18 bags from uninsured farms.
“Insurance is not charity — it is a tool of empowerment,” Omosehin explained. “With NIIRA 2025, we aim to expand index-based and parametric insurance, introduce bundled products with credit and input services, and build digital delivery channels that connect farmers directly to protection.”
He cited the success of the NAGS-AP scheme in Kaduna, where ginger farmers received payouts after over 90% crop loss, and livestock insurance programs in Sokoto, Bauchi, Adamawa, and Plateau States that are helping reduce farmer-herder conflicts.
NIIRA 2025: A Blueprint for Modernization and Economic Stability
Omosehin provided an in-depth breakdown of NIIRA 2025, describing it as a comprehensive reform that consolidates decades of fragmented laws into a coherent, forward-looking legal structure that supports growth, transparency, and innovation.
Key focus areas include:
- Compulsory Insurance Enforcement:
NIIRA 2025 strengthens enforcement across compulsory insurance categories — including motor third-party, group life, builders’ liability, and government asset protection. The Act introduces digital verification mechanisms, clearer penalties for non-compliance, and mandatory insurance for public assets and employees to protect government resources. - Climate and Infrastructure Risk Mitigation:
He noted that Nigeria loses billions annually to floods, fires, and disasters. Insurance, he said, offers a sustainable fiscal strategy that helps governments avoid unplanned spending while ensuring that infrastructure investments such as roads, schools, and hospitals are financially protected. - Financial Soundness and Solvency of Insurers:
The Act introduces stricter capital adequacy, solvency, and governance standards to enhance the stability of insurance companies and ensure prompt claims settlement, thereby restoring confidence in the market. - Digitalisation and Consumer Protection:
Trust has long been a barrier to insurance penetration. Omosehin explained that NIIRA 2025 mandates digital claim processing, e-policy issuance, and the creation of a Policyholder Protection Fund — designed to safeguard customers in cases of insurer insolvency.“By digitizing operations, we’re removing barriers, increasing transparency, and giving Nigerians a reason to believe in insurance again,” he said. - Financial Inclusion and Takaful Expansion:
NIIRA 2025 introduces flexible, low-cost microinsurance and expands Takaful (Islamic-compliant insurance), opening access to millions of low-income earners and religiously sensitive individuals who were previously excluded from formal protection.
Legislative Support: The Engine of Implementation
Omosehin urged lawmakers to play a central role in ensuring the success of NIIRA 2025 through oversight, awareness campaigns, and harmonization of state-level policies.
“The law has been passed, but the real work begins now,” he cautioned. “Without legislative backing and budgetary support, compliance will remain weak, and the potential of NIIRA 2025 will not be realized.”
He called for stronger enforcement of compulsory insurance among Ministries, Departments, and Agencies (MDAs), while encouraging members of the House Committee to champion public awareness campaigns in their constituencies to demystify insurance and build citizen trust.
Insurance as a Catalyst for National Prosperity
In his closing remarks, Omosehin underscored that insurance is not merely a financial product but a national instrument of security and resilience. He reiterated that the NIIRA 2025 positions the Nigerian insurance industry to support President Bola Ahmed Tinubu’s $1 trillion economy vision through capital mobilization, infrastructure financing, and risk transfer mechanisms.
“Insurance is about protecting lives and preserving government resources,” Omosehin concluded. “NIIRA 2025 marks the dawn of a new era — one where insurance stands as a cornerstone of Nigeria’s financial stability and a driver of inclusive growth.”
The retreat ended with a renewed sense of commitment from both legislators and operators, united by a shared goal — to transform Nigeria’s insurance industry into a transparent, innovative, and globally competitive sector that works for all.
At the 2025 Stakeholders’ Retreat in Maiduguri, Commissioner for Insurance, Olusegun Ayo Omosehin, unveiled NIIRA 2025 as a transformative blueprint for Nigeria’s insurance industry, urging stronger legislative collaboration to drive agricultural protection, digital innovation, and inclusive financial growth.
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