The Senate on Tuesday passed a bill seeking to repeal and reenact the law establishing the National Insurance Commission (NAICOM), replacing it with a new regulatory body to be known as the Insurance Regulatory Commission (IRC).
The legislation, titled the National Insurance Regulatory Commission (Repeal and Enactment) Bill, 2026 (SB. 394), was passed following the presentation and consideration of the report of the Senate Committee on Banking, Insurance and Other Financial Institutions.
The bill, sponsored by Senator Mukhail Adetokunbo Abiru (APC, Lagos East) alongside members of the committee, seeks to modernise Nigeria’s insurance regulatory framework, strengthen oversight of the sector and align the country’s insurance laws with current realities and global best practices.
Presenting the committee’s report, Senator Abiru said the existing National Insurance Commission Act of 1997 had become obsolete and no longer adequately addressed the changing dynamics of the insurance industry.
According to him, although NAICOM has played a significant role in regulating insurance companies, brokers and loss adjusters while protecting policyholders and ensuring compliance with industry standards, the legal framework guiding its operations has failed to keep pace with developments within the financial sector.
He said the legislation would establish the independence of the newly renamed Insurance Regulatory Commission and strengthen its powers to regulate the insurance industry without undue interference.
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Abiru explained that the bill also empowers the commission to collaborate and exchange information with domestic and international regulatory authorities, issue regulations, standards, guidelines and directives on insurance-related matters, and exercise stronger intervention powers over financially distressed insurance institutions to protect policyholders and preserve financial stability.
He added that the proposed law would enhance the commission’s ability to resolve failing insurance companies in an orderly manner in accordance with the provisions of the Act.
The senator further stated that the bill introduces stricter requirements for the appointment of members of the commission’s governing board, insisting that only individuals with relevant expertise in insurance, finance, law, risk management and corporate governance would be eligible to oversee the affairs of the regulatory body.
According to him, the new provisions are designed to ensure that competent professionals with proven integrity and experience are responsible for shaping policies and strengthening regulatory oversight in the insurance industry.
The legislation also provides legal protection for the commission and its officials against adverse claims arising from actions taken in the lawful execution of their regulatory responsibilities.
The Senate noted that changing the name from the National Insurance Commission to the Insurance Regulatory Commission was necessary to eliminate longstanding confusion surrounding the agency’s identity while better reflecting its statutory role as the country’s insurance regulator.
With the passage of the bill by the Senate, the proposed legislation will proceed to the House of Representatives for concurrence before being transmitted to President Bola Tinubu for assent.