By Sunday Ameh
The Senate has passed the Insurance Regulatory Commission Bill, 2025, a landmark piece of legislation aimed at overhauling Nigeria’s insurance regulatory framework by replacing the National Insurance Commission (NAICOM) Act of 1997.
The bill, sponsored by Senator Tokunbo Abiru (Lagos East), was passed on Tuesday after lawmakers adopted the report of the Senate Committee on Banking, Insurance and Other Financial Institutions.
Presenting the report, Abiru said the existing NAICOM Act had become outdated and no longer reflected the realities of Nigeria’s evolving insurance industry or global best practices.
He explained that the committee conducted a public hearing, consulted extensively with stakeholders and reviewed more than 50 memoranda before recommending the bill for passage.
According to the senator, the proposed legislation seeks to strengthen the independence of the insurance regulator while expanding its powers to collaborate with domestic and international supervisory authorities.
The bill empowers the commission to issue regulations, guidelines, standards and directives, while enhancing its authority to intervene in distressed insurance institutions to safeguard policyholders and ensure financial stability within the sector.
It also introduces stricter corporate governance requirements by prescribing professional qualifications and suitability standards for members of the commission’s governing board.
To improve compliance, the legislation provides stiffer sanctions for regulatory violations, including increased fines, licence suspension, additional liabilities and the disqualification of culpable individuals from serving in insurance institutions.
Abiru said the bill also updates provisions relating to the supervision, inspection and intervention in insurance companies, enabling the regulator to respond more swiftly when institutions become distressed.
Another key provision empowers the Minister of Finance to constitute an interim management committee within 30 days following the expiration or termination of the commission’s governing board.
The legislation further expands the commission’s objectives to include the effective administration, supervision, regulation, control, integrity and development of insurance business in Nigeria.
It also provides legal protection for the commission and its officers against claims arising from the lawful execution of their duties while strengthening the regulator’s position in judicial proceedings.
As part of the reforms, the bill proposes changing the agency’s name from the National Insurance Commission (NAICOM) to the Insurance Regulatory Commission (IRC) to eliminate ambiguity within the sector.
Abiru said the proposed law would provide a comprehensive legal framework capable of enhancing the regulation and supervision of insurance businesses, boosting public confidence and improving the international competitiveness of Nigeria’s insurance industry.
Several lawmakers who contributed to the debate expressed support for the bill.
Senator Osita Izunaso (Imo West) described the legislation as Nigeria’s first holistic insurance law, saying it would significantly strengthen oversight of the sector.
Senator Aminu Abbas (Adamawa Central) said the reforms would improve insurance penetration across the country and contribute to economic growth.
Also supporting the bill, Senator Adams Oshiomhole (Edo North) said stronger regulation had become necessary as authorities seek to expand the role of insurance in Nigeria’s economy, adding that robust oversight would protect all stakeholders and prevent abuse.
Following its consideration clause by clause in the Committee of the Whole, the Senate passed the Insurance Regulatory Commission Bill, 2025. The proposed legislation will proceed to the House of Representatives for concurrence before being transmitted to the President for assent.
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