The Senate has passed a bill to rename the National Insurance Commission (NAICOM) as the Insurance Regulatory Commission (IRC) as part of efforts to strengthen insurance regulation in Nigeria. The proposed law also seeks to enhance the commission’s independence, expand its regulatory authority and protect the agency and its officials while carrying out their lawful duties.
The legislation, titled the National Insurance Regulatory Commission (Repeal and Enactment) Bill, 2026, was approved after the Senate considered the report of its Committee on Banking, Insurance and Other Financial Institutions. The committee’s chairman, Senator Adetokunbo Abiru, presented the report before lawmakers passed the bill for its third reading.
According to Abiru, the transition from NAICOM to the Insurance Regulatory Commission will take effect once the legislative process is completed and the bill receives presidential assent. He explained that the name change would better reflect the regulator’s responsibilities and remove confusion surrounding its current title.
The proposed Insurance Regulatory Commission law will also give the regulator greater independence, allowing it to make decisions without undue influence. It will empower the commission to issue guidelines, standards and directives, exchange information with local and international regulatory bodies, and intervene in financially troubled insurance companies to protect policyholders and maintain financial stability.
Abiru noted that NAICOM, created under the 1997 Act, has played an important role in regulating insurance companies, brokers and loss adjusters. However, he argued that the law has become outdated and no longer reflects modern developments in the insurance industry. “Despite its significant contributions, the enabling law has become obsolete, failing to align with current realities and global best practices, and unable to keep pace with the evolving nature of the insurance industry,” he said.
The bill also introduces stricter qualification requirements for board members, requiring expertise in areas such as insurance, finance, law, risk management and corporate governance to strengthen the commission’s leadership.
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