The Senate on Tuesday passed legislation to rename the National Insurance Commission (NAICOM) as the Insurance Regulatory Commission (IRC), in a move aimed at strengthening insurance regulation and modernising the legal framework governing the sector.
The bill, titled the Insurance Regulatory Commission (Establishment) Bill, 2026, was approved after lawmakers considered and adopted the report of the Senate Committee on Banking, Insurance and Other Financial Institutions.
Chairman of the committee, Senator Adetokunbo Abiru (APC, Lagos East), who presented the report, said the proposed legislation seeks to repeal and re-enact the existing National Insurance Commission Act of 1997 to bring it in line with current realities in the insurance industry.
He explained that the bill would grant the proposed Insurance Regulatory Commission greater operational independence and stronger regulatory powers to effectively supervise the industry.
According to Abiru, the current law has become inadequate in addressing developments in the insurance sector and requires comprehensive reform to meet international standards.
He said the bill empowers the commission to issue regulations, guidelines and directives to stakeholders, collaborate with domestic and foreign regulatory agencies through information sharing, and intervene promptly in troubled insurance companies to protect policyholders and maintain financial stability.
The senator noted that the legislation also shields the commission and its officials from legal liabilities arising from actions taken in the course of carrying out their statutory responsibilities.
Abiru said the change of name from the National Insurance Commission to the Insurance Regulatory Commission is intended to provide a clearer identity for the regulator and better reflect its role within Nigeria's financial system.
He further stated that the bill introduces stricter criteria for appointments to the commission's governing board, requiring members to possess relevant expertise in insurance, finance, law, corporate governance and risk management.
According to him, the reforms are expected to strengthen corporate governance, improve consumer confidence and position the insurance industry for sustainable growth.
The bill, sponsored by Senator Abiru and other members of the Senate Committee on Banking, Insurance and Other Financial Institutions, was passed after its third reading.
It will now proceed to the House of Representatives for concurrence before being transmitted to President Bola Tinubu for assent.
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