The Senate has passed the Insurance Regulatory Commission Bill, 2025, a landmark legislation aimed at overhauling Nigeria’s insurance regulatory framework and replacing the National Insurance Commission (NAICOM) Act of 1997.
The bill, sponsored by Senator Tokunbo Abiru (Lagos East), was approved 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Presenting the report, Abiru said the existing law has become outdated and no longer reflects the realities of Nigeria’s insurance industry or global best practices.
“The enabling law has become obsolete, failing to align with current realities and global best practices,” he said.
According to the lawmaker, the new bill is designed to strengthen the independence of the regulator, expand its oversight powers, and improve collaboration with both local and international regulatory bodies.
The proposed legislation also empowers the commission to issue regulations, guidelines and standards, while giving it stronger authority to intervene in troubled insurance companies to protect policyholders.
In addition, the bill introduces stricter governance requirements, including professional qualifications for board members, and tougher penalties for regulatory violations such as higher fines, licence suspension and the disqualification of offending individuals from serving in insurance institutions.
One of the key provisions of the bill is the proposed renaming of the National Insurance Commission (NAICOM) to the Insurance Regulatory Commission (IRC) to better reflect its role and eliminate ambiguity within the sector.
Several lawmakers supported the bill during debate.
Senator Osita Izunaso described it as a major step forward for the insurance industry.
“For the first time, we are going to have a holistic legislation on the issue of insurance,” he said.
Senator Aminu Abbas also said the legislation would help improve insurance penetration and contribute to Nigeria’s economic growth, while Adams Oshiomhole stressed the need for stronger regulation as the insurance sector continues to expand.
Following the debate, the Senate considered the bill clause by clause before passing it.
The proposed legislation is expected to provide a more modern legal framework for regulating Nigeria’s insurance industry and enhancing public confidence in the sector.
