The Senate has passed a bill to repeal and re-enact the law establishing the National Insurance Commission (NAICOM), paving the way for the agency to be renamed the Insurance Regulatory Commission (IRC).
The legislation, titled the Insurance Regulatory Commission (Establishment) Bill, 2026, was passed after the Senate adopted the report of its Committee on Banking, Insurance and Other Financial Institutions.
Presenting the report, the committee’s chairman, Senator Adetokunbo Abiru (APC, Lagos East), said the proposed legislation had become necessary because the National Insurance Commission Act of 1997 was outdated and no longer reflected the realities of Nigeria’s evolving insurance industry or global regulatory standards.
According to Abiru, the existing law contains significant regulatory gaps and no longer adequately addresses the changing needs and growth of the insurance sector.
“The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs and development of the insurance business,” he said.
He explained that the bill seeks to strengthen the independence of the Commission by empowering it to make regulatory decisions without undue influence, while enhancing its powers to issue regulations, guidelines, standards and directives on insurance-related matters.
The proposed legislation also expands the Commission’s authority to exchange information and collaborate with domestic and international regulatory bodies, as well as intervene more effectively in financially distressed insurance companies to protect policyholders and safeguard financial stability.
The Senate said the decision to rename the agency from the National Insurance Commission to the Insurance Regulatory Commission was intended to eliminate confusion associated with its current designation and better reflect its role as the industry’s primary regulator.
The bill further provides legal protection for the Commission and its officers against liabilities arising from the lawful execution of their statutory duties.
