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Senate okays Nigeria Insurance Industry Reform Bill, 2024 for Second Reading

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Senator Mukhail Adetokunbo Abiru,

The Nigeria Insurance Industry Reform Bill, 2024 (SB 393) scaled second reading at the Senate on Thursday.

The bill was Sponsored by the Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Senator Mukhail Adetokunbo Abiru, (Lagos East), and 41 other Senators.

Senator Abiru, in his lead debate, addressed the Senate on the general principles of the bill that seeks to provide a comprehensive legal framework for the regulation and supervision of all manner of insurance businesses in Nigeria.

Speaking on the bill, Senator Abiru decried the low penetration of insurance services in Nigeria, despite being one of the oldest industries in the nation’s financial services sector. He put the penetration rate at 0.5%, ranking 70th globally and 5th in Africa.

Abiru, an accomplished economist and accountant, who retired as a bank Chief Executive, argued further that, “With its young and vibrant population and growing GDP, the potential for exponential growth is undeniable. However, to truly thrive in the next decade, the industry must reform in order to take advantage of the opportunities and contribute to economic growth in the country”.

In reference to the extant laws that regulate the practices of various insurance businesses, like the Insurance Act, 2003, the Marine Insurance Act, Motor Vehicles (Third Party Insurance) Act, National Insurance Corporation of Nigeria Act, and Nigeria Reinsurance Corporation Act, these laws, according to Senator Abiru, have become obsolete and ineffective in the wake of innovations and dynamics that have characterized the practices of insurance in recent time.

“All these legislations, having surpassed a two-decade mark, lack provisions that can adequately address contemporary challenges and support growth & innovations within the industry. This legal obsolescence has led to some level of regulatory inefficiencies in the insurance industry.

“This has also hampered the industry’s ability to successfully compete on a global level, underscoring the necessity of a thorough assessment and update to improve international competitiveness of Nigeria’s insurance industry”, Senator Abiru submitted in his lead debate.

He highlighted the specific objectives of the bill and the general benefits to Nigerians, and the economy. The bill consolidates various existing pieces of legislation regulating the conduct of insurance businesses in Nigeria such as the Insurance Act, 2003 the Marine Insurance Act, Motor Vehicles (Third Party Insurance) Act, National Insurance Corporation of Nigeria Act, and Nigeria Reinsurance Corporation Act.

The bill therefore seeks to provide a robust legal and regulatory framework that will ensure that the Insurance sector contributes positively to the principal objective of the Financial System Strategy to make Nigeria Africa’s financial hub and one (1) of the twenty (20) largest economies in the world; Evolve effective risk based supervision, in the regulatory system as the existing rule based supervision, enabled by the current laws has become obsolete; Fast track the process of managing weak companies as the existing legislation is not efficient for effective distress management; Review the penalties as the ones prescribed in the existing laws are inadequate and not deterrent enough.

Other objectives included, the need to ensure ethical practice and international best practices as required by the International Association of Insurance Supervisors(IAIS), and the need for a legal and regulatory framework that allows the supervisory authority to deal promptly with issues evolving from the dynamism of the insurance business.

The Senators unanimously commended Senator Abiru, and 41 other co-sponsors for coming up with a well-researched and critical bill that will revolutionize the insurance sector in Nigeria.

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Legislature

Tinubu to Present 2025 Budget on Tuesday

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Bola Tinubu presenting 2024 Budget

Indications have emerged that President Bola Tinubu will present the 2025 Appropriation Bill to the National Assembly on Tuesday, December 17, 2024.
This announcement was made by Senate President Godswill Akpabio during Thursday’s plenary session.

Akpabio confirmed that the budget presentation will take place at the House of Representatives Chamber. He also noted that Tinubu had previously submitted the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025–2027 to both chambers of the National Assembly last Tuesday.

Akpabio therefore directed the Senate Committees on Finance, National Planning, and Economic Affairs to review the MTEF/FSP documents and submit their report within one week.

Key parameters in the MTEF/FSP include $75 oil price benchmark per barrel, a daily oil production target of 2.06 million barrels, an exchange rate of N1,400 to $1 and a GDP growth rate target of 6.4%
These figures will guide the consideration and approval of the proposed N47.9 trillion 2025 budget.entrusted with their collective hopes and aspirations for a just and equitable society through legislation.

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Legislature

El-Rufai lauds Shehu Sani, others for contributions to democracy

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Mohammed Bello El-Rufai and Shehu Sani

Member representing Kaduna North Federal Constituency, Hon. Mohammed Bello El-Rufai, has applauded key figures like Senator Shehu Sani, Governor Uba Sani, the late Gani Fawehinmi, and Femi Falana for their pivotal roles in Nigeria’s struggle for democracy. Speaking at the National Assembly Legislative Forum (NASSLAF) in Abuja, the Lawmaker who is the son of immediate past Governor of Kaduna State, Nasir Elrufai acknowledged their consistent advocacy for workers’ welfare and democratic rights.

El-Rufai described Sen. Shehu Sani as a “father” and recognized him and Governor Uba Sani for setting an example in supporting legislative aides and fostering democratic dividends in their constituencies. He pledged to continue their legacy in his representation.

El-Rufai made this known at an event organised by the National Assembly Legislative Forum(NASSLAF) in Abuja, with the theme: “Role of Legislative Aides in National Development.

“I am glad that Sen. Shehu Sani has been invited here. Regardless of the politics between him and my father for example, even senator Shehu Sani’s enemies cannot discard the fact that him , Gani Fawehinmi school of thought, the Falana’s have consistently and deliberately advocated for the welfare and rights of workers across board.

On the need to preserve the Legislature, El-Rufai said the roles of legislative aides in lawmaking should be taken seriously.

He commended Sen. Sani and Gov. Uba Sani for taking good care of their legislative aides when they were senators.

El-Rufai added that the the two Sani’s had legislative aides at their constituency offices to give the people the dividends of democracy, stressing that “I want to continue that.”

On his part, Sen. Shehu Sani, who was the Keynote Speaker at the event, commended El-Rufai for effective representation in Kaduna North Federal Constituency.

On the role of the National Assembly in nation building, Sani called on the need for the independence of the legislature, adding that legislative aides played critical role in effective representation in the National Assembly.

Sani called on legislative aides to always tell their principals the real happenings in the country.

Sani, a former lawmaker representing Kaduna Central Senatorial District, urged the legislature to live up to its responsibilities, for the betterment of Nigeria and Nigerians.

He said a subservient legislature would not be able to work in the interest of the country, saying that such could affect good governance and undermine democracy.

“In our time, it was unthinkable for heads of MDAs to ignore our summons. They understood the gravity of our oversight functions,” he said.

The lawmaker further advised lawmakers against prioritising personal gains over constitutional responsibilities

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Legislature

Bill to establish Federal College of skills acquisition, technology Agulu, passes 2nd reading

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The Nigerian Senate on Wednesday passed for second reading, a bill seeking to establish the Federal College of Skills acquisition, technology Agulu, Anambra state.
The sponsor of the bill Sen.Victor Umeh (LP-Anambra) had indicated that acquisition of technical and technological skills is a major requirement for the advancement and development of any nation.

While presenting his lead debate
Umeh said the establishment of platforms for acquisition of requisite skills, through technical and technological education is a source of youth’s empowerment.

This, he said is a sure way of curtailing unemployment in the country.

“It is instructive to note that Nigeria today, ranks among nations with very high level of youth unemployment.

“We have millions of youths idling away without any visible means of livelihood and this has significantly contributed to the high level of insecurity in the Country, that an idle mind is a devil’s workshop.

He, however, said the idle youths could be salvaged and empowered through acquisition of technical skills that would provide employment opportunities for them, especially, in the construction industry and enable them to be self-employed.

He said the bill has been conceived to provide trainings in bricklaying, electrical installations, plastering, roofing, plumbing, painting, cooling systems, refrigeration.

Others are carpentry, steel fabrications, welding, ceiling POPs, Iron bending and fitting among others.

“It is not in doubt that people with these skills are the backbone of the construction industry in any given nation,for example, in America and other developed countries of the world.”

He said great emphasis was placed on skills acquisition among the youths in the US, particularly those not in pursuit of university degrees or diplomas in tertiary institutions.

He urged the lawmakers to support the expeditious passage of the bill because of its far-reaching relevance to the socio-economic development of this country.

Consequently the bill which received support of most lawmakers who made contribution given its potential was read for the second time.

Deputy President of Senate, Barau Jibrin, (APC-Kano) who presided plenary referred the bill to committee on Tertiary Institutions and Tertiary Education Trust Fund (TETFund) for further legislative inputs and to return back to plenary in four weeks.

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