The Senate has passed a bill seeking to repeal and re-enact the law establishing the National Insurance Commission (NAICOM), paving the way for the agency to be renamed the Insurance Regulatory Commission (IRC).
The bill, titled the Insurance Regulatory Commission (Establishment) Bill, 2026, was passed after lawmakers considered and adopted the report of the Senate Committee on Banking, Insurance and Other Financial Institutions.
Presenting the report, the committee chairman, Senator Adetokunbo Abiru (APC, Lagos East), said the proposed legislation became necessary because the existing National Insurance Commission Act of 1997 no longer reflects the realities of Nigeria’s expanding insurance industry and current global regulatory practices.
Abiru said the outdated law had created regulatory gaps that required urgent legislative action to strengthen the sector and improve oversight.
“The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs and development of the insurance business,” the lawmaker said.
He explained that the proposed law would strengthen the independence of the commission by allowing it to take regulatory decisions without undue interference.
According to him, the new framework would also empower the commission to collaborate with local and international regulatory bodies, exchange information, issue insurance regulations and guidelines, and intervene more effectively in distressed insurance companies.
The Senate said the proposed name change was aimed at removing confusion associated with the current designation and ensuring that the agency’s identity better reflects its core responsibility as the regulator of Nigeria’s insurance industry.
The bill also provides legal protection for the commission and its officers against claims arising from the lawful performance of their statutory responsibilities.
If enacted, the legislation is expected to enhance policyholder protection, improve financial stability within the insurance sector and strengthen Nigeria’s compliance with international regulatory standards.
