The Nigerian Senate on Tuesday approved a major legislative overhaul of the nation’s insurance sector, passing a bill to rename the National Insurance Commission (NAICOM) as the Insurance Regulatory Commission (IRC) and expand its supervisory powers.
The bill, officially titled the Insurance Regulatory Commission (Establishment) Bill, 2026, repeals the nearly three-decade-old National Insurance Commission Act of 1997. The legislative action took place during a plenary session at the National Assembly in Abuja following the adoption of a comprehensive report from the Senate Committee on Banking, Insurance, and Other Financial Institutions.
Core Provisions of the Bill, Transitions NAICOM to the Insurance Regulatory Commission (IRC) to reflect modern global financial standards and streamline administrative processes.
It therefore mandates stricter sanctions for non-compliance, including higher financial fines, operational suspensions, and the disqualification of negligent corporate directors.
The bill enacts statutory protections for regulatory officers carrying out lawful enforcement actions in good faith and empowers the commission to quickly intervene in distressed financial institutions to protect policyholders.
Presenting the report on the Senate floor, Committee Chairman Senator Adetokunbo Abiru (APC, Lagos East) noted that the existing legal framework was no longer adequate for Nigeria’s evolving financial landscape.
”The 1997 Act is outdated and incapable of driving the growth, stability, and modern needs of Nigeria’s insurance industry,” Senator Abiru said.
Senate President Godswill Akpabio declared the bill passed after it received unanimous support during a voice vote. The measure now moves to the House of Representatives for concurrence before being sent to the President for final assent into law.
