Proposed law seeks to strengthen regulation, impose tougher sanctions and rename the National Insurance Commission as the Insurance Regulatory Commission.
The Senate on Tuesday passed the Insurance Regulatory Commission Bill, 2025, paving the way for a major overhaul of Nigeria’s insurance industry nearly three decades after the establishment of the National Insurance Commission (NAICOM).
The legislation, which scaled third reading following the adoption of a report by the Senate Committee on Banking, Insurance and Other Financial Institutions, seeks to repeal the National Insurance Commission Act of 1997 and establish a new regulatory framework for the sector.
If signed into law by President Bola Tinubu, the bill will replace the existing NAICOM Act, grant broader powers to the regulator, introduce stiffer penalties for violations and officially rename the National Insurance Commission as the Insurance Regulatory Commission.
Presenting the committee’s report, Chairman of the panel, Senator Tokunbo Abiru (APC, Lagos East), said the current law no longer reflects the realities of Nigeria’s evolving insurance landscape.
According to him, the proposed legislation will strengthen the regulator’s independence, empower it to collaborate with local and international agencies, and enable it to intervene in distressed insurance companies to protect policyholders and maintain financial stability.
The bill also introduces stricter corporate governance standards, including professional qualifications for board members, tougher enforcement measures, licence suspensions and the disqualification of individuals found guilty of regulatory breaches.
Abiru disclosed that the committee reviewed over 50 memoranda and engaged key stakeholders through a public hearing before recommending the bill for passage.
He added that the proposed law broadens the commission’s mandate to include the supervision, regulation, development and integrity of insurance business in Nigeria.
Lawmakers hailed the bill as one of the most significant reforms of the nation’s insurance industry in recent years.
Senator Osita Izunaso (Imo West) described it as a “holistic legislation” that would ensure insurance companies are properly regulated, while former Edo State Governor, Senator Adams Oshiomhole, said the bill would help deepen insurance penetration and boost public confidence in the sector.
The bill will now be transmitted to the House of Representatives for concurrence before being forwarded to President Tinubu for assent.