NIIRA, Recapitalisation to Boost Investor Confidence, Protect Policyholders, Says Abiru

Senator Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, has expressed optimism about the implementation of the Nigeria Insurance Industry Reform Act (NIIRA) 2025 and the recapitalisation of insurance companies. He believes these measures will bolster investor confidence, elevate policyholder protection, and contribute positively to Nigeria's economic growth.

Abiru received an Honorary Fellowship from the Nigerian Council of Registered Insurance Brokers (NCRIB) for his efforts in spearheading the NIIRA 2025. The fellow was conferred upon him at the National Insurance Conference and Exhibition in Abuja, acknowledging his commitment to the industry and his role in sponsoring the reform bill.

NIIRA 2025 introduced reforms such as enhancing capital requirements, improving risk-based supervision, promoting sound corporate governance, and safeguarding policyholder interests. According to Abiru, the industry's potential to bolster economic growth, protect businesses, and mobilise long-term funds remains largely untapped due to factors like low insurance penetration, insufficient consumer awareness, and concerns about consumer confidence.

He stressed the need for sustained collaboration among lawmakers, regulators, and industry professionals to ensure the reforms' tangible benefits for the economy and the populace. As of August 2026, 43 insurance and reinsurance firms had met the new capital requirements set by NIIRA. Abiru highlighted that a stronger capital base would enhance the industry's capacity to underwrite larger risks, stimulate business expansion, and bolster policyholder protection.

Effective regulation would also ensure operators adhere to regulatory standards, enabling the industry to absorb losses and foster investment. Abiru further advocated for the passage of the Insurance Regulatory Commission Bill 2026, which aims to modernise the regulatory framework and strengthen supervisory and enforcement capacities.

He emphasized that the success of the reforms hinges on robust enforcement and the commitment to maintain high professional standards by industry participants. Abiru urged insurance professionals to prioritise professionalism, transparency, innovation, and exceptional customer service to foster public confidence in the sector's ability to fulfil its obligations.