The Senate has passed a bill seeking to rename the National Insurance Commission (NAICOM) as the Insurance Regulatory Commission (IRC).
Lawmakers said the name change was necessary because the existing title no longer accurately reflects the commission’s role and has created confusion within Nigeria’s insurance industry.
The bill also provides legal protection for the commission and its officers against adverse claims arising from the discharge of their official duties.
The legislation, titled the Insurance Regulatory Commission (Establishment) Act, was passed on Tuesday after the Senate considered the report of the Committee on Banking, Insurance and Other Financial Institutions on the National Insurance Regulatory Commission (Repeal and Re-enactment) Bill, 2026 (SB. 394).
Chairman of the committee, Senator Adetokunbo Abiru (APC, Lagos East), presented the report to the chamber.
“That the Senate do Receive and Consider the Report of the Committee on Banking, Insurance and Other Financial Institutions on the National Insurance Regulatory Commission (Repeal & Enactment) Bill, 2026 (SB. 394),” Abiru said.
The bill was sponsored by Abiru alongside members of the Senate Committee on Banking, Insurance and Other Financial Institutions.
With its passage at third reading, NAICOM will officially transition to the Insurance Regulatory Commission (IRC), subject to the completion of the legislative process.
Presenting the committee’s report, Abiru said the existing law establishing NAICOM had become outdated and no longer reflected current realities or international regulatory standards.
“Established by the National Insurance Commission Decree of 1997, the National Insurance Commission was empowered to regulate insurance companies, brokers, and loss adjusters, ensuring they operate within set guidelines. It also mandates the Commission to protect policyholders, monitor financial solvency, and enforce industry-wide compliance. Over the years, NAICOM has been instrumental in promoting compliance, enforcing standards, and fostering the development of the insurance market.
“However, despite its significant contributions, the enabling law has become obsolete, failing to align with current realities and global best practices, and unable to keep pace with the evolving nature of the insurance industry, exposing numerous gaps in the law, necessitating urgent amendments.”
Explaining the objectives of the bill, Abiru said it would strengthen the commission’s independence and expand its regulatory authority.
“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 Bill seeks to establish the independence of the Commission and strengthen its regulatory powers, including the ability to make decisions without undue influence.
“The Bill also grants the Commission enhanced powers to exchange information and collaborate with domestic and international regulatory and supervisory authorities, issue regulations, guidelines, standards, and directives to relevant government institutions and stakeholders on insurance-related matters, and exercise strengthened resolution and intervention powers to address financially distressed insurers, protect policyholders, preserve financial stability, and facilitate the orderly resolution of failing insurance institutions in accordance with the provisions of the Bill.”
Abiru added that the legislation introduces stricter qualification requirements for members of the commission’s governing board to ensure appointments are based on professional competence and integrity.
“The National Insurance Commission (NAICOM) plays a critical role in regulating and developing Nigeria’s insurance sector, ensuring financial stability, consumer protection, and industry growth. To effectively achieve these objectives, it is essential that its Governing Board comprises individuals with the requisite expertise in insurance, risk management, finance, law, and corporate governance. The bill introduces clear requirements for the expertise and suitability of board members that will ensure that only competent professionals with relevant experience and integrity are appointed to guide the commission’s policies and regulatory framework.”
