Industrial legislation agency TNP has raised crucial issues over sure provisions within the newly enacted Nigerian Insurance coverage Trade Reform Act 2025 (NIIRA 2025), warning that features of the laws could battle with present company governance legal guidelines and create regulatory bottlenecks.
Signed into legislation in August by President Bola Tinubu, NIIRA 2025 introduces sweeping reforms geared toward modernizing Nigeria’s insurance coverage sector.
The Act mandates larger capital necessities for insurance coverage companies, enforces obligatory insurance coverage insurance policies, and establishes complete laws for technology-driven suppliers, together with fintechs.
Authorized Evaluation Requires Warning
Whereas business stakeholders have largely welcomed the laws as a catalyst for innovation, consolidation, and improved protection throughout Nigeria, TNP’s authorized evaluation urges warning on a number of fronts.
“Whereas the Act enhances the Fee’s oversight of the insurance coverage business, sure provisions could inadvertently create governance issues. For example, stopping insurers from holding Annual Common Conferences the place annual returns are usually not accredited may battle with their statutory obligations underneath the Firms and Allied Issues Act 2020,” TNP said in its report titled ‘Evaluation of the Nigeria Insurance coverage Trade Reform Act 2025’, obtained by Nairametrics.
The agency emphasised that the interaction between the Fee’s expanded regulatory powers and present company governance frameworks requires cautious alignment to keep away from unintended authorized conflicts.
Potential Jurisdictional Overlaps
TNP additionally highlighted potential jurisdictional overlaps within the regulation of mergers and acquisitions throughout the insurance coverage sector.
Whereas NIIRA 2025 grants the Nationwide Insurance coverage Fee authority to approve or reject such transactions, the Federal Competitors and Shopper Safety Fee (FCCPC) retains concurrent jurisdiction underneath the Federal Competitors and Shopper Safety Act (FCCPA).
“Twin oversight may create procedural and timing complexities except there may be clear regulatory coordination between the Fee and the FCCPC,” the report famous.
Potentials of NIIRA 2025
Regardless of these issues, TNP acknowledged the Act as a landmark growth in Nigeria’s monetary panorama.
The agency famous that NIIRA 2025 has the potential to deepen market penetration, bolster investor confidence, and improve public belief in insurance coverage as a driver of financial development, supplied its implementation is constant and collaborative.
The report concluded that the success of the reforms will hinge on the Fee’s enforcement capability, insurers’ dedication to compliance, and the broader public’s confidence within the sector.
What You Ought to Know
Some sweeping reforms underneath the NIIRA 2025 embody:
- Part 96(1)(b) says Nigerian motorists at the moment are legally permitted to current their motor insurance coverage certificates in digital kind throughout routine checks or accidents. This can be a main shift from the beforehand required hardcopy documentation.
- Part 37 (1) of the Insurance coverage laws says Unlicensed insurance coverage brokers throughout Nigeria are liable, upon conviction, to a six-month jail time period, with penalties together with a fantastic of N500,000.
- Part 201 mandates that individuals working insurance coverage companies on-line should receive a license from the Nationwide Insurance coverage Fee to apply in Nigeria.
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