The Nigerian Senate has passed a bill seeking to repeal the National Insurance Commission (NAICOM) Act, 1997 and to enact the National Insurance Regulatory Commission Act, 2026.
The report of the Committee on Banking, Insurance and other Financial Matters was presented in plenary on Tuesday.
In presenting the report, the Chairman of the Committee, Senator Adetokunbo Abiru, said the bill was for the repeal of the National Insurance Commission Act and the enactment of the Insurance Regulatory Commission Act.
Senator Abiru said the enabling law has become obsolete, unable to keep up with present realities and global best practice and also unable to keep pace with the changing nature of the insurance industry.
He said it exposed many gaps in the law that needed to be urgently addressed.
He is not satisfied that the National Insurance Act 1997 makes adequate provision for the emerging economic growth needs and the development of the insurance business.
“The bill aims to entrench the independence of the commission and enhance its regulatory powers to make decisions without undue influence,” Senator Abiru said. The bill also provides the commission with increased powers to share information and cooperate with domestic and international regulatory and supervisory authorities, he said.
The bill, he said, highlighted the need for the board to have people with requisite expertise in insurance, risk management, finance, law and corporate governance.
He said the bill also brought in penalties and enforcement measures including higher fines, suspension of licenses and others.
He added that the bill also provides for the barring of people from holding positions in insurance institutions if found responsible for failures.
“Ensuring the effective administration, supervision, regulation, control, integrity and development of the insurance business in Nigeria is the core mandate of the commission,” he said.
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He said the bill was intended to shield the commission and its officers from 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.
He said the bill would 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 insurance industry.
He asked 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 of 2025.
The passage of the bill, Senator Aminu Abbas (APC, Adamawa) said would further restore confidence among insurance practitioners and also ensure improved penetration of the sector.
In his remarks after the bill was passed, President of the Senate, Senator Godswill Akpabio thanked the committee for its tremendous input on the bill.
The Senate would leave the sector better than it met it by passing the bill, said Senator Akpabio.
He congratulated the Senate on the successful passage of the bill.
