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 He also emphasized that existing insurance laws were outdated and no longer addressed the contemporary challenges or supported growth and innovation in the sector.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.

***Enhance Livestock Productivity also

The Nigerian Senate has called on the Federal Government to fund the establishment of modern ranches nationwide, aimed at improving safety and economic productivity for both herders and local residents.
The lawmakers also resolved to enact a law that will define the limits of economic activities under ECOWAS treaty
The resolutions came during a deliberation on a motion of urgent national importance presented by Senator Anthony Siyako Yaro (Gombe South), titled: “Urgent Need to Address Incessant Banditry Attacks/Killings and Displacement of Innocent Nigerians in Billiri Local Government Area of Gombe State.”

In his motion, Senator Yaro decried the recent attacks on December 11, 2024, where armed assailants, suspected to be herders, stormed Sansani, Kalindi, Powishi, and Lawushi Daji villages in Billiri Local Government Area, killing several residents, destroying property, and displacing scores of people. Houses, food supplies, and livestock were razed during the attack.

He cited Sections 33 and 41 of the 1999 Constitution, which protect the rights to life and freedom of movement, calling on the government to fulfill its duty to safeguard lives and property. He also highlighted how the violence destabilized neighboring states such as Taraba, Bauchi, and Adamawa, while disrupting food sufficiency and economic activities in the region.
Senator Seriake Dickson advocated for the establishment of federally funded modern ranches, describing ranching as a sustainable solution to the herdsmen crisis.
He argued that the initiative would enhance security, create economic opportunities, and resolve the longstanding conflicts between herders and host communities.

“Ranching is a legitimate business opportunity that could transform livestock management in Nigeria, while also ensuring the safety of both herders and locals,” Dickson stated.

He proposed a collaborative approach involving the Senate Committees on Agriculture and National Security, alongside the Ministry of Agriculture and the newly established Ministry of Livestock, to develop a nationwide ranching framework.

Senator Adams Oshiomhole echoed the need for decisive action, urging the Senate to revisit its prior resolution to hold a national public hearing to address the security and economic challenges posed by unregulated movement and activities under the ECOWAS framework.
He stressed the importance of enacting laws to regulate economic activities and define individual rights, ensuring public safety.
The senate therefore observed a minute’s silence in honor of the victims.
It also urged the Inspector General of Police, Chief of Army Staff, and Director General of the DSS to investigate the attacks, arrest the perpetrators, and prosecute them.
It called for the immediate establishment of a joint police and military taskforce in Billiri Local Government Area to prevent further killings.
It requested the Ministry of Humanitarian Affairs, NEMA, and the North East Development Commission to provide relief materials to displaced victims.
Theawmakers mandated the Senate Committees on Legislative Compliance, Police Affairs, and National Security to ensure compliance with these resolutions and develop long-term solutions to the insecurity.
The Senate’s focus on modern ranching and legislative solutions underscored its commitment to addressing the root causes of conflicts, safeguarding lives, and promoting economic development across the country.