Senate passes bill to rename NAICOM

The Senate has passed the Insurance Regulatory Commission (Establishment) Bill, 2026 (SB. 394), which officially renames the National Insurance Commission (NAICOM).

The passage followed the presentation and consideration of the Senate Committee on Banking, Insurance and other Financial Institutions National Insurance Regulatory Commission (Repeal & Enactment) Bill, 2026 (SB. 394) by the Chairman, Senator Adetokunbo Abiru (APC, Lagos East).

Senator Abiru said, “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.”

The bill was sponsored by Senator Mukhail Adetokunbo Abiru, alongside all Members of the Senate Committee on Banking, Insurance and Other Financial Institutions.

With this, the National Insurance Commission, NAICOM, has officially rebranded and transitioned into the Insurance Regulatory Commission (IRC) after the bill was read the third time and passed.

Presenting the report, Senator Abiru said, “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.”

On the objectives of the Bill, Abiru said, “The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs, and development of the insurance business.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.

“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.”

𝕤𝕖𝕖 𝕞𝕠𝕣𝕖/𝕨𝕒𝕥𝕔𝕙 𝕥𝕙𝕖 𝕧𝕚𝕕𝕖𝕠 𝕙𝕖𝕣𝕖