In August 2025, Nigeria enacted the Insurance Industry Reform Act (NIIRA) 2025, marking the most comprehensive transformation of the insurance sector in more than two decades. The law aims to strengthen consumer protection, drive digital innovation, and enforce compulsory insurance.
However, this Impact Snapshot highlights how some provisions, particularly those on compulsory insurance of public buildings and passenger insurance for commercial vehicles, may unintentionally burden low-income Nigerians through higher rents, transport fares, and living costs.
The report stresses that while the Act can modernise the industry and expand coverage, its success depends on inclusive implementation. It calls for micro-premium payment options, phased enforcement, awareness campaigns, and collaboration with informal sector unions to prevent deeper exclusion and build public trust.
Ultimately, the reform must balance industry stability with affordability and access, ensuring that insurance becomes a genuine safety net for all Nigerians, not a new source of financial strain.
Download to read the full Impact Snapshot here.
