The Senate on Tuesday passed the Insurance Regulatory Commission Bill, 2025, seeking to repeal the National Insurance Commission Act, 1997, and establish a new legal framework for regulating Nigeria’s insurance industry.
The proposed legislation, which scaled third reading after lawmakers considered and adopted the report of the Senate Committee on Banking, Insurance and Other Financial Institutions, is aimed at modernising insurance regulation, strengthening oversight and aligning the sector with global best practices.
If signed into law by President Bola Tinubu, the bill will replace the nearly three-decade-old NAICOM Act, strengthen the powers of the insurance regulator, introduce tougher sanctions for regulatory breaches and rename the National Insurance Commission as the Insurance Regulatory Commission.
Presenting the committee’s report, the Chairman of the committee, Senator Tokunbo Abiru (APC, Lagos East), said the existing law had become outdated and no longer reflected the realities of Nigeria’s evolving insurance industry.
He noted that the committee held a public hearing, engaged key stakeholders and reviewed more than 50 memoranda before recommending the bill for passage.
According to Abiru, the proposed legislation seeks to strengthen the independence of the regulator by granting it enhanced powers to discharge its responsibilities without undue interference.
He said the commission would also be empowered to collaborate with local and international regulatory bodies, issue regulations and directives, and intervene in distressed insurance institutions to safeguard policyholders and maintain financial stability.
The lawmaker added that the bill introduces stricter corporate governance provisions by prescribing professional qualifications and suitability standards for members of the commission’s governing board.
He said it also provides tougher enforcement measures, including stiffer fines, suspension of licences, additional liabilities and the disqualification of individuals found culpable for regulatory failures.
Abiru further explained that the legislation updates provisions relating to supervision, inspection and regulatory intervention to enable the commission to respond more effectively to emerging challenges in the insurance sector.
He said the bill also provides for the constitution of an interim management committee by the Minister of Finance within 30 days after the expiration or termination of the governing board’s tenure.
According to him, the proposed law expands the objectives of the commission to include the effective administration, supervision, regulation, control, integrity and development of insurance business in Nigeria.
He added that the legislation protects the commission and its officers against adverse claims arising from the lawful execution of their duties and strengthens the regulator’s legal standing in judicial proceedings.
Abiru also said the bill proposes changing the name of the National Insurance Commission to the Insurance Regulatory Commission to eliminate ambiguity within the sector.
Contributing to the debate, the senator representing Imo West, Osita Izunaso, commended the committee for what he described as a far-reaching reform of the insurance industry.
“Having looked at the whole synopsis of the report of this bill, I want to commend the committee.
“For the first time, we are going to have holistic legislation on the issue of insurance.
“Insurance companies are now being properly regulated by this bill,” he said.
Also speaking, Senator Adams Oshiomhole (APC, Edo North) said the legislation comes at a time when financial regulators are seeking to deepen insurance penetration and expand the sector’s role in Nigeria’s economy.
“It is of public knowledge that the CBN and other authorities are trying to expand the role of insurance,” he said.
“Clearly, a robust regulation is required to avoid abuse and to ensure that all parties involved are protected.
“Having listened to the lead speaker, I am convinced that the report is well thought out, well thought through, and merits the support and endorsement of the Senate,” he added.
The passage of the bill forms part of ongoing efforts by the National Assembly to reform Nigeria’s financial services sector through updated legislation designed to improve regulation, strengthen investor confidence and enhance consumer protection.
The bill will be transmitted to the House of Representatives for concurrence before being forwarded to the President for assent.
