The Senate has approved legislation replacing the National Insurance Commission (NAICOM) with the Insurance Regulatory Commission (IRC), marking a major overhaul of Nigeria’s insurance regulatory framework.
ADVERTISE HERE:
[email protected]
Beyond the change of name, the bill is designed to strengthen oversight of the insurance industry, expand regulatory powers and position the commission to respond more effectively to emerging challenges within the sector.
Lawmakers argued that the current NAICOM Act, enacted nearly three decades ago, no longer reflects the realities of a rapidly evolving insurance market.
They maintained that the new framework would align Nigeria’s insurance regulation with international standards while improving consumer protection.
The legislation also grants the proposed commission greater operational independence and shields it and its officials from certain legal actions arising from decisions taken in the course of their statutory duties.
Under the bill, the regulator will be empowered to issue binding directives, formulate industry standards, collaborate with foreign and domestic supervisory bodies, and intervene in troubled insurance companies to prevent systemic risks.
Presenting the committee’s report, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru, said the reform was necessary to modernise insurance regulation in the country.
“The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs and development of the insurance business,” he told lawmakers.
Abiru noted that the proposed law would give the commission stronger institutional capacity to carry out its mandate without undue interference.
According to him, the legislation would also improve coordination between Nigerian regulators and their counterparts abroad, enabling more effective supervision of insurance operators and strengthening confidence in the sector.
“The Bill seeks to establish the independence of the Commission and strengthen its regulatory powers, including the ability to make decisions without undue influence,” he said.
Another key provision of the bill focuses on governance.
The legislation introduces stricter qualification requirements for members of the commission’s board, with emphasis on expertise in insurance, finance, law, risk management and corporate governance.
Supporters of the measure said the move would help ensure that regulatory decisions are driven by professional competence and industry knowledge.
The Senate approved the Insurance Regulatory Commission (Establishment) Bill, 2026, after considering and adopting the report of its banking and insurance committee.
The passage of the bill on Tuesday followed its third reading in the upper chamber and officially cleared the path for the transition from NAICOM to the Insurance Regulatory Commission, subject to the remaining legislative and executive processes.
Post a Comment
Drop Your Comment In The Box Below