The Senate has approved a bill that increases the minimum capital requirements for insurance companies operating in Nigeria from ₦2 billion to ₦10 billion.
The bill also raised the minimum capital for reinsurance companies from ₦10 billion to ₦35 billion, and for non-life insurance companies, the requirement was increased from ₦3 billion to ₦15 billion.

The bill was passed after the Senate considered the report of its Committee on Banking, Insurance, and other Financial Institutions, which was presented by the committee chairman, Senator Adetokunbo Abiru.
The bill after going through clause-by-clause consideration at a session chaired by Deputy Senate President, Senator Barau Jibrin was passed with overwhelming support from senators during a voice vote.
The provisions of the bill seek to regulate the insurance business in Nigeria by consolidating several existing laws, including the Insurance Act of 2003, the Marine Insurance Act, the Motor Vehicles (Third Party Insurance) Act, the National Insurance Corporation of Nigeria Act, and the Nigerian Reinsurance Corporation Act.
The bill was sponsored by Senator Abiru, who represents Lagos East Senatorial District.
A key provision of the bill, Section 15, outlines the minimum capital requirements for various categories of insurance businesses:
For non-life insurance business, the minimum capital will be ₦15 billion or a risk-based capital determined by the Nigerian Insurance Commission.
For life assurance business, the minimum capital will be ₦10 billion or a risk-based capital determined by the Commission.
For reinsurance business, the minimum capital will be ₦35 billion or a risk-based capital determined by the Commission.
Senator Abiru, while presenting the report, explained that the increases were necessary due to the depreciation of the Nigerian currency and the need for Nigeria’s insurance industry to become more competitive internationally. He also emphasized that existing insurance laws were outdated and no longer addressed the contemporary challenges or supported growth and innovation in the sector.
“These legal obsolescence has led to regulatory inefficiencies in the insurance industry and hampered its ability to compete on a global level,” Abiru said. “The new provisions will contribute positively to the insurance industry and help Nigeria become Africa’s financial hub, as well as one of the 20 largest economies in the world.”

However, Senator Jimoh Ibrahim of Ondo South raised concerns that the capital increase would lead to the extinction of some insurance companies, particularly because only one reinsurance company currently operates in the country. He argued that the increase, alongside the requirement to deposit 20% of the capital in the Central Bank of Nigeria, would make it impossible for companies to survive. Ibrahim recommended maintaining the current ₦2 billion capital requirement.
His concerns were not supported, and the Senate proceeded with the bill’s passage. The bill will now be sent to the House of Representatives for concurrence before being transmitted to President Bola Tinubu for assent.
Once signed into law, insurance companies operating in Nigeria will be required to meet the revised minimum capital requirements to continue their operations.

The Senate has passed a bill for the establishment of the Projects Development Agency (PRODA) in Enugu, aimed at advancing scientific, engineering, and technological research to support Nigeria’s industrialization and economic development.

The bill, sponsored by Senator Patrick C. Ndubueze (Imo North), received unanimous approval after the presentation of a report by the Senate Committee on Science and Technology, led by Senator Aminu Iya Abbas (PDP, Adamawa Central).

The proposed agency will focus on conducting research and developing technologies that align with Nigeria’s socioeconomic needs.
The objectives of the bill include to strengthen the interface between science, policy, and society by fostering collaboration among researchers, policymakers, and practitioners.
It is also aimed at Promoting international cooperation to address technological gaps and enhance research infrastructure.

The bill also is aimed at encouraging inclusive innovation by involving stakeholders in designing and implementing solutions.
It is also aimed at facilitating access to critical technological tools and solutions to address national development challenges as well as building public trust in science, engineering, and technology as essential drivers of sustainable development.

The bill builds upon the framework of the National Science and Technology Development Agency Decree No. 5 of 1977, which initially listed the Project Development Institute as a key entity.

After being debated during its second reading on May 15, 2024, the bill was referred to the Senate Committee on Science and Technology for detailed examination. The committee recommended its passage, citing the need to enhance the existing institute’s capacity and ensure optimal performance in driving technological innovation.

PRODA is expected to play a transformative role in Nigeria’s development by facilitating the domestication of cutting-edge technologies and fostering innovation to address pressing societal challenges. Its establishment represents a significant step towards strengthening Nigeria’s technological ecosystem and achieving long-term economic sustainability.

The Senate has endorsed the recommendations of its Committee on Ethics, Code of Conduct, and Public Petitions concerning two high-profile cases: one involving misconduct allegations against a former civil servant and another addressing claims of wrongful termination of employment.
In the case of misconduct allegations against Mr. Uwalaka Peter Ebere, a former staff member of the Office of the Auditor General for the Federation. the petition was presented by Senator Onyewuchi Ezenwa (Imo East).
In the petition Mr. Ebere alleged wrongful dismissal in 2020, claiming he was not afforded a fair hearing and sought reinstatement with payment of outstanding salaries.

However, the committee’s investigation revealed that Mr. Ebere was guilty of employment racketeering.
He was found to have extorted money from job seekers under false pretenses, issued fake appointment letters, and later refunded part of the extorted amount when confronted by one of his victims.
The committee affirmed that both the Office of the Auditor General and the Federal Civil Service Commission found him culpable of fraudulent practices.

The Senate committee led by its chairman Neda Imasuen had recommended upholding Mr. Ebere’s dismissal to serve as a deterrent to others.
It had also directed the Office of the Auditor General to identify similar offenders and hand them over to law enforcement for prosecution.
The Senate unanimously adopted the recommendations.
In the second case, Senator Sunday Marshall Katung (Kaduna South) had presented the petition of Mr. Yakubu Gaku Mbaka, who alleged wrongful termination of his employment by the Niger Delta Power Holding Company (NDPHC) in 2018.
Investigations by the committee revealed that Mr. Mbaka was employed as a junior staff member in 2015, primarily as a security operative.
His position was terminated after the managing director he was assigned to left office and the company outsourced its security operations.
Mr. Mbaka received a severance payment of ₦1.5 million and signed all necessary exit documents.
Despite this, he sought reinstatement and back payment of salaries.
The committee findings indicated that Mr. Mbaka’s employment was not statutorily protected adding that he had completed his exit process and accepted his severance package.
The Senate committee recommended rejecting Mr. Mbaka’s request for reinstatement, a decision adopted by the Senate.
Senate President Godswill Akpabio praised the Ethics Committee, led by Senator Imasuen, for its thorough investigations and dedication. He highlighted the Senate’s role as a platform for addressing the grievances of ordinary Nigerians and called for greater support to empower committees handling public petitions.

The Senate’s resolutions reaffirm its commitment to fostering accountability, fairness, and ethical governance in public service and corporate operations.