On July 21, 2026, the senate has officially passed the Insurance Regulatory Commission Bill, 2025, marking a transformative step toward modernizing Nigeria’s insurance sector. The historic legislation repeals the nearly three-decade-old National Insurance Commission (NAICOM) Act of 1997, replacing it with a robust, modern legal framework designed to align with global standards, bolster financial stability, and deepen consumer confidence.
Presided over by Senate President Godswill Akpabio, the bill passed its Third Reading following the consideration and adoption of a report submitted by the Senate Committee on Banking, Insurance and Other Financial Institutions. The bill was sponsored by Committee Chairman, Senator Mukhail Adetokunbo Abiru (APC, Lagos East), alongside committee members.
Key Highlights of the Bill
Renaming and Rebranding: The National Insurance Commission (NAICOM) will be officially renamed the Insurance Regulatory Commission to clarify its mandate and eliminate longstanding name-related confusion.
Enhanced Regulatory Independence & Authority: The Commission gains broader supervisory powers, including the ability to issue binding guidelines, collaborate with international regulatory bodies, and swiftly intervene in distressed insurance institutions to safeguard policyholders.
Stricter Governance Standards: The legislation enforces higher qualifications for appointments to the Commission’s governing board, restricting leadership to proven experts in insurance, finance, risk management, law, and corporate governance.
Tougher Penalties for Non-Compliance: To curb regulatory breaches, the bill introduces severe sanctions, higher financial fines, license suspensions, and permanent disqualification for individuals responsible for institution failures.
Consumer & Industry Protection: The updated framework establishes early-intervention mechanisms to resolve failing institutions, preserving public trust in the financial system.
Presenting the committee report, Senator Abiru emphasized that the 1997 NAICOM Act had become obsolete, leaving significant regulatory gaps unable to meet modern economic demands.
The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs, and development of the insurance business.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 inputs made on the proposed bill will provide a comprehensive legal framework to ensure the industry can successfully compete on a global level and improve the international competitiveness of Nigeria’s insurance sector.
Senator Abiru Adetokunbo.
Senate President Akpabio commended Senator Abiru and the committee for their leadership, reiterating the National Assembly’s commitment to driving economic reforms that strengthen Nigeria’s financial infrastructure.
Following its unanimous passage in the Senate, the Insurance Regulatory Commission Bill, 2025, will be transmitted to the House of Representatives for concurrence before being forwarded to President Bola Ahmed Tinubu for presidential assent. Once enacted, the law is expected to drive insurance penetration, enhance regulatory oversight, and position Nigeria as a competitive insurance hub in Africa.
