The Nigerian Senate has passed a bill to repeal the National Insurance Commission (NAICOM) Act 1997 and enact the National Insurance Regulatory Commission Act 2026.
This followed the presentation of the report of the Committee on Banking, Insurance and other Financial Matters at plenary on Tuesday.
Chairman of the Committee, Senator Adetokunbo Abiru, presenting the report, said the bill sought to repeal the National Insurance Commission Act and enact the Insurance Regulatory Commission Act.
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Senator Abiru said the enabling law had become obsolete, failing to align with current realities and global best practice, and unable to keep pace with the evolving nature of the insurance industry.
This, he said, exposed numerous gaps in the law, necessitating urgent amendments.
According to him, the National Insurance Act 1997 does not adequately address emerging economic growth needs and the development of the insurance business.
Senator Abiru said the bill sought to establish the independence of the commission and strengthen its regulatory powers to make decisions without undue influence. He also said the bill would grant the commission enhanced powers to exchange information and collaborate with domestic and international regulatory and supervisory authorities.
According to him, the bill underscored the need for the board to comprise individuals with requisite expertise in insurance, risk management, finance, law and corporate governance.
He said the bill also introduced penalties and enforcement measures such as increased fines and suspension of licences, among others.
He said the bill also makes provision to prevent individuals from holding positions in insurance institutions if found responsible for failures.
He noted that the principal objective of the commission was to ensure effective administration, supervision, regulation, control, integrity, and development of the insurance business in Nigeria.
He disclosed that the bill sought to provide protection for the commission and its officers against adverse claims in the execution of their powers.
According to him, the bill proposes a change of name of the commission from the National Insurance Commission to the Insurance Regulatory Commission.
He said the bill would help provide a comprehensive legal framework for the regulation and supervision of all types of insurance businesses in Nigeria.
This, he emphasised, would enable the insurance industry to successfully compete on a global level and improve the international competitiveness of Nigeria and the insurance industry.
He urged the Senate to consider the report and pass the Insurance Regulatory Commission Establishment Bill 2026.
Contributing, Senator Osita Izunaso (APC, Imo) said the insurance sector, given the passage of the bill, would now experience robust regulation like the Investments and Securities Act 2025 for the capital markets sector.
Senator Aminu Abbas (APC, Adamawa) said the passage of the bill would further restore confidence among insurance practitioners, while also ensuring improved penetration of the sector.
President of the Senate, Senator Godswill Akpabio, in his remarks after the bill was passed, thanked the committee for its tremendous input on the bill.
Senator Akpabio said the Senate, via passage of the bill, would be leaving the sector better than it met it.
He congratulated the Senate for the successful passage of the bill.
