Senate passes Bill to rename NAICOM as Insurance Regulatory Commission
NASS
Nike Popoola
The Senate on Tuesday approved the Insurance Regulatory Commission Bill, 2025, paving the way for a major overhaul of Nigeria’s insurance regulatory framework and the repeal of the National Insurance Commission (NAICOM) Act enacted in 1997.
The proposed legislation, which passed third reading after the Senate adopted the report of the Committee on Banking, Insurance and Other Financial Institutions, seeks to modernise oversight of the insurance industry and align it with current realities and global standards.
If signed into law by President Bola Tinubu, the bill will establish the Insurance Regulatory Commission (IRC), replacing NAICOM and granting the new regulator expanded powers to supervise operators, enforce compliance and protect policyholders.
Presenting the committee’s report, Chairman of the committee, Senator Tokunbo Abiru, said the existing legal framework had become outdated and no longer adequately addressed developments within the insurance sector.
He disclosed that the committee consulted widely before recommending the bill for passage, including holding a public hearing and reviewing more than 50 memoranda submitted by stakeholders.
According to Abiru, the legislation will strengthen the regulator’s independence and empower it to issue directives, collaborate with local and international institutions, and intervene in distressed insurance companies when necessary.
The bill also introduces stricter corporate governance standards for board members, while imposing tougher sanctions for regulatory violations, including higher fines, licence suspensions and disqualification of culpable individuals.
Other provisions include enhanced supervisory and inspection powers, legal protection for the commission and its officials acting within the law, and a requirement for the Minister of Finance to appoint an interim management committee within 30 days of the expiration or termination of a governing board’s tenure.
Speaking during the debate, Senator Osita Izunaso described the bill as a comprehensive reform that would strengthen accountability across the insurance industry.
Senator Adams Oshiomhole also backed the legislation, noting that stronger regulation is necessary to deepen insurance penetration and support economic growth.
The bill will now proceed to the House of Representatives for concurrence before being forwarded to President Tinubu for assent.
