The Senate has passed a bill seeking to rename the National Insurance Commission (NAICOM) as the Insurance Regulatory Commission (IRC), as part of efforts to strengthen the regulation of Nigeria’s insurance industry and align the sector with global best practices.
The legislation, titled the Insurance Regulatory Commission (Establishment) Bill, 2026, was passed on Tuesday following the presentation and adoption of the report of the Senate Committee on Banking, Insurance and Other Financial Institutions.
Presenting the committee’s report, its Chairman, Senator Adetokunbo Abiru (APC, Lagos East), said the proposed legislation would repeal and re-enact the existing law establishing NAICOM, which he described as outdated and no longer suitable for the evolving insurance industry.
According to him, the bill seeks to modernise the legal framework governing insurance regulation, strengthen the commission’s independence and expand its regulatory and supervisory powers.
Abiru explained that the proposed name change from the National Insurance Commission to the Insurance Regulatory Commission would eliminate confusion associated with the current designation and better reflect the agency’s core mandate.
He noted that the bill also provides legal protection for the commission and its officials against claims arising from actions taken in the lawful discharge of their responsibilities.
The senator said the proposed law would empower the commission to collaborate more effectively with local and international regulatory bodies through information sharing and coordinated supervision.
He added that the legislation authorises the commission to issue regulations, guidelines, standards and directives on insurance-related matters, while also granting it stronger intervention powers to manage distressed insurance companies, safeguard policyholders and preserve financial stability.
According to Abiru, the existing National Insurance Commission Act of 1997 has become obsolete and no longer addresses the realities of today’s insurance market or the demands of a rapidly changing financial system.
He further stated that the bill introduces stricter eligibility requirements for members of the commission’s governing board to ensure that only individuals with proven expertise in insurance, finance, law, risk management and corporate governance are appointed.
The lawmaker said the reforms are intended to improve regulatory oversight, strengthen consumer protection and support the long-term growth and stability of Nigeria’s insurance industry.
The bill, sponsored by Senator Abiru alongside members of the Senate Committee on Banking, Insurance and Other Financial Institutions, was passed after its third reading and now awaits concurrence by the House of Representatives and presidential assent before becoming law.