The Senate on Tuesday passed a landmark bill to repeal and re-enact the National Insurance Commission (NAICOM) Act, clearing the way for the country’s insurance regulator to be renamed the Insurance Regulatory Commission (IRC) in a move aimed at strengthening oversight of the sector and bringing Nigeria’s regulatory framework in line with global best practices.
The proposed legislation, titled the Insurance Regulatory Commission (Establishment) Bill, 2026, was approved after the Senate adopted the report of its Committee on Banking, Insurance and Other Financial Institutions.
Presenting the report, Chairman of the committee, Senator Mukhail Adetokunbo Abiru (APC, Lagos East), said the existing National Insurance Commission Act of 1997 had become outdated and could no longer effectively address the realities of Nigeria’s rapidly evolving insurance industry.
He explained that the bill is intended to modernise the legal framework governing the sector, strengthen regulatory oversight and equip the Commission with broader powers to supervise insurance operators more effectively.
According to Abiru, renaming the agency from the National Insurance Commission to the Insurance Regulatory Commission is designed to remove ambiguity surrounding its current designation and clearly reflect its core mandate as the nation’s insurance regulator.
“The current National Insurance Commission Act, 1997, is outdated and does not adequately address the emerging needs and development of the insurance business,” he told lawmakers.
The legislation seeks to enhance the Commission’s operational independence by empowering it to make regulatory decisions without undue external interference while expanding its authority to issue regulations, standards, guidelines and directives for insurance operators.
The bill also strengthens the Commission’s enforcement powers by enabling closer collaboration and information-sharing with both domestic and international regulatory agencies, a provision expected to improve supervision of insurers and deepen regulatory cooperation.
In a significant reform, the proposed law provides a stronger legal basis for regulatory intervention in financially distressed insurance companies, allowing the Commission to take prompt corrective measures to protect policyholders, secure insurance funds and preserve confidence and stability within the industry.
It further grants legal protection to the Commission and its officials against liabilities arising from actions taken in the lawful discharge of their statutory duties.
The Senate said the legislation forms part of the National Assembly’s broader agenda to overhaul Nigeria’s financial sector regulatory architecture and align it with international standards of governance, accountability and effective supervision.
Having secured Senate approval, the bill will now proceed to the House of Representatives for concurrence before being transmitted to President Bola Tinubu for presidential assent.