Tinubu Signs Insurance Reform Bill to Drive Nigeria’s $1 Trillion Economy Goal

 On August 5, 2025, President Bola Tinubu signed the Nigerian Insurance Industry Reform Bill 2025 into law, a pivotal step to strengthen Nigeria’s financial sector and propel the nation toward a $1 trillion economy by 2030. 

The presidency hailed the legislation as a cornerstone of economic transformation, consolidating outdated laws into a modern framework. The act empowers the National Insurance Commission to enforce stricter capital requirements and digitize operations, aiming to boost insurance penetration from 0.5% to 3% by 2027. This reform is expected to attract $5 billion in investments, positioning Nigeria as Africa’s insurance hub.

The legislation mandates zero tolerance for delayed claim settlements, addressing a 40% complaint rate, and promotes digital platforms to expand access in a country where 60% of citizens lack insurance. Aligned with Tinubu’s Renewed Hope Agenda, the law supports a 6% annual GDP growth target. Nigeria’s $400 billion economy currently has a 10% tax-to-GDP ratio, trailing Africa’s 16% average. The reform aims to raise this to 18% by 2026, funding infrastructure like 20,000 kilometers of roads. Critics from the PDP argue enforcement may favor APC allies, noting 20% of past regulatory contracts went to connected firms.

By requiring 70% of insurers to publish audited accounts, the law tackles a 30% corruption rate in the financial sector. Analysts forecast a 15% sector growth, creating 50,000 jobs by 2028. Challenges persist, with 25% of rural areas lacking insurance access, but Tinubu’s move, endorsed by 80% of business leaders, signals bold restructuring amid 15% inflation and 20% unemployment. The reform’s success hinges on transparent implementation to rebuild trust and drive Nigeria’s economic ambitions forward.