Senate passes bill to rename NAICOM, strengthen insurance regulation
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 proposed legislation, titled the Insurance Regulatory Commission (Establishment) Bill, 2026, was approved after the Senate adopted the report of its Committee on Banking, Insurance and Other Financial Institutions.
Presenting the committee’s report, its chairman, Senator Adetokunbo Abiru (APC, Lagos East), said the existing National Insurance Commission Act of 1997 had become obsolete and no longer reflected the realities of Nigeria’s evolving insurance industry or international regulatory standards.
He said the legislation was designed to modernise the legal framework governing the insurance sector, close regulatory gaps and align Nigeria’s insurance oversight with global best practices.
Abiru explained that the decision to rename the Commission was intended to eliminate confusion associated with its current designation and better reflect its role as the country’s insurance regulator.
The bill also grants legal protection to the Commission and its officers against liabilities arising from the lawful discharge of their statutory responsibilities.
According to the senator, the proposed law would strengthen the Commission’s operational independence by enabling it to make regulatory decisions without undue external influence.
He added that the legislation would enhance the regulator’s authority to exchange information and collaborate with local and international regulatory bodies, issue regulations, guidelines, standards and directives, and intervene more effectively in financially distressed insurance companies to safeguard policyholders and maintain financial stability.
Abiru said the reforms were necessary because the 1997 Act no longer adequately addressed the changing needs and growth of Nigeria’s insurance industry, making comprehensive legislative intervention imperative.