Senate Passes Insurance Regulatory Commission Bill, 2025

The Nigerian Senate has passed the Insurance Regulatory Commission Bill, 2025, which seeks to repeal the National Insurance Commission Act, 1997 and establish a modern legal framework for regulating Nigeria’s insurance industry.

The legislation, which scaled third reading after adoption of the report by the Senate Committee on Banking, Insurance and Other Financial Institutions, is designed to strengthen oversight, align regulation with global best practices, and enhance consumer protection.

If signed into law by President Bola Tinubu, the bill will replace the nearly three-decade-old NAICOM Act, strengthen the powers of the insurance regulator, introduce tougher sanctions for regulatory breaches and rename the National Insurance Commission as the Insurance Regulatory Commission.

Presenting the report, Senator Tokunbo Abiru (APC, Lagos East) noted that the existing NAICOM Act is outdated and no longer reflects the realities of Nigeria’s evolving insurance industry. He highlighted stakeholder engagement, public hearings, and over 50 memoranda reviewed before recommending passage.

According to Abiru, the proposed legislation seeks to enhanced regulatory powers. The bill empowers the new Insurance Regulatory Commission to act independently, collaborate with international regulators, and intervene in distressed institutions to protect policyholders.

The lawmaker added that the bill provides stricter corporate governance where professional qualifications and suitability standards are prescribed for members of the governing board.

He said it also provides tougher enforcement measures, including stiffer fines, suspension of licences, additional liabilities and the disqualification of individuals found culpable for regulatory failures.

Abiru further explained that the legislation updates supervision, inspection, and regulatory interventions, providing modernised to address emerging challenges in the sector.

He said the bill also provides for the constitution of an interim management committee by the Minister of Finance within 30 days after the expiration or termination of the governing board’s tenure.

According to him, the proposed law expands the objectives of the commission to include the effective administration, supervision, regulation, control, integrity and development of insurance business in Nigeria.

He added that the legislation protects the commission and its officers against adverse claims arising from the lawful execution of their duties and strengthens the regulator’s legal standing in judicial proceedings.

Abiru also said the bill proposes changing the name of the National Insurance Commission to the Insurance Regulatory Commission to eliminate ambiguity within the sector.

Senators Osita Izunaso and Adams Oshiomhole commended the bill as a far-reaching reform that will deepen insurance penetration and strengthen Nigeria’s financial services sector.

The passage of the bill forms part of ongoing efforts by the National Assembly to reform Nigeria’s financial services sector through updated legislation designed to improve regulation, strengthen investor confidence and enhance consumer protection.

The bill will be transmitted to the House of Representatives for concurrence before being forwarded to the President for assent.

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