Senate Approves Major Shake-Up, Renames NAICOM In Landmark Bill

The proposed legislation also seeks to enhance the commission’s independence, expand its supervisory and enforcement powers, and provide legal protection for the commission and its officials in the lawful execution of their duties.

The bill, titled the National Insurance Regulatory Commission (Repeal and Re-Enactment) Bill, 2026, was passed after the Senate adopted the report of its Committee on Banking, Insurance and Other Financial Institutions.

Chairman of the committee, Senator Adetokunbo Abiru, presented the report before lawmakers considered the bill clause by clause and approved it for third reading.

Abiru, who represents Lagos East Senatorial District, sponsored the bill alongside other members of the committee and urged the Senate to adopt the committee’s recommendations.

With its passage, the legislation paves the way for the transition of NAICOM to the Insurance Regulatory Commission (IRC), subject to concurrence by the House of Representatives and presidential assent.

According to the Senate, the proposed name change is intended to eliminate confusion surrounding the current designation and better reflect the agency’s regulatory role within Nigeria’s insurance sector.

Presenting the committee’s report, Abiru noted that NAICOM was established under a 1997 decree to regulate insurance companies, brokers and loss adjusters, while safeguarding policyholders, monitoring the financial health of insurers and ensuring compliance across the industry.

He said the commission has played a critical role in strengthening the insurance market by enforcing standards and promoting regulatory compliance.

However, the senator argued that the commission’s enabling law has become outdated and no longer reflects the realities of today’s insurance industry or aligns with international best practices.

“Despite its immense contributions, the existing law is no longer adequate to address the evolving nature of the insurance sector or meet current global standards,” Abiru said.

He explained that the proposed legislation would grant the commission greater operational independence, enabling it to make regulatory decisions free from undue external influence.

“The current National Insurance Commission Act of 1997 no longer meets the demands of a modern insurance industry. This bill is designed to strengthen the commission’s autonomy and expand its regulatory authority,” he added.

The legislation also empowers the commission to issue guidelines, standards and directives governing insurance operations.

Expanded Regulatory Powers

Under the proposed law, the regulator will have broader powers to collaborate and exchange information with both local and international regulatory agencies.

The bill also authorises the commission to intervene in financially distressed insurance companies and oversee the orderly resolution of failing insurers to safeguard policyholders and maintain financial stability.

In addition, it grants legal immunity to the commission and its officers against lawsuits arising from actions taken in good faith while carrying out their statutory responsibilities.

Abiru further disclosed that the bill introduces stricter qualification requirements for members of the commission’s governing board to ensure only competent professionals oversee the industry.

He stressed that board members must possess relevant expertise in areas such as insurance, finance, law, risk management and corporate governance to strengthen the commission’s policy direction and regulatory effectiveness.