The Nigerian Senate has passed a bill for the repeal of the National Insurance Commission (NAICOM) Act, 1997 and for the enactment of the National Insurance Regulatory Commission Act, 2026.
The report of the Committee on Banking, Insurance and other Financial Matters was presented at plenary on Tuesday.
Presenting the report, the Chairman of the Committee, Senator Adetokunbo Abiru, said the bill was aimed at repealing the National Insurance Commission Act and enacting the Insurance Regulatory Commission Act.
“Senator Abiru said that the enabling law has become obsolete, unable to align with the present realities and global best practice and also unable to keep pace with the changing nature of the insurance industry.
He said it revealed many holes in the law that needed to be rectified urgently.
He is not satisfied that the National Insurance Act 1997 adequately provides for the emerging economic growth needs and the development of the insurance business.
“The bill seeks to establish the independence of the commission and strengthen its regulatory powers to make decisions free of undue influence,” Senator Abiru said. The bill would also give the commission enhanced powers to share information and cooperate with domestic and international regulatory and supervisory authorities, he said.
The bill, he said, underscored the need for the board to be comprised of people with requisite expertise in insurance, risk management, finance, law and corporate governance.
The bill also introduced penalties and enforcement measures such as increased fines and suspension of licenses among others, he said.
He added that the bill also makes provisions to bar people from holding positions in insurance institutions if they are found to be responsible for failures.
He said the commission’s core mandate is to ensure the effective administration, supervision, regulation, control, integrity and development of the insurance business in Nigeria.
He disclosed that the bill was meant to protect the commission and its officers against adverse claims in the exercise of their powers.
He said the bill seeks to change the name of the commission from the National Insurance Commission to the Insurance Regulatory Commission.
According to him, the bill would help to provide a comprehensive legal framework for the regulation and supervision of all types of insurance businesses in Nigeria.
This, he stressed, would make the insurance industry to compete successfully on global stage and improve the international competitiveness of Nigeria and the insurance industry.
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He called on the Senate to consider the report and pass the Insurance Regulatory Commission Establishment Bill 2026.
Contributing, Senator Osita Izunaso (APC, Imo) said the bill would now ensure that the insurance sector enjoyed robust regulation as the capital markets sector had with the Investments and Securities Act 2025.
The passage of the bill, Senator Aminu Abbas (APC, Adamawa) said would further restore confidence among insurance practitioners, as well as ensure improved penetration of the sector.
President of the Senate, Senator Godswill Akpabio, thanked the committee for its tremendous input on the bill, in his remarks after the bill was passed.
Senator Akpabio said the Senate would leave the sector better than it met by passing the bill.
He congratulated the Senate for passing the bill successfully.
