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The Senate on Tuesday passed a bill that seeks to rename the National Insurance Commission (NAICOM) as the Insurance Regulatory Commission (IRC) as part of efforts to strengthen regulation and oversight of Nigeria’s insurance sector.
The bill was passed after lawmakers considered in plenary the report of the Senate Committee on Banking, Insurance and Other Financial Institutions.
If it eventually becomes law, the legislation will not only change the commission’s name, but also expand its regulatory powers, introduce tougher enforcement measures and modernize Nigeria’s insurance regulatory framework.
The Senate approves the bill
The committee’s report was presented by its Chairman, Senator Adetokunbo Abiru, who is also the sponsor of the bill alongside other members of the committee.
After deliberations, Senate President Godswill Akpabio put the bill to a voice vote, with lawmakers overwhelmingly supporting its passage.
The bill subsequently passed its third reading after the Senate decided within the European Commission to examine it point by point.
The legislation will now move to the House of Representatives for approval before being forwarded to President Bola Tinubu for presidential assent.
Why the commission is changing its name
Presenting the committee’s report, Abiru said the proposed name change became necessary because the current designation no longer adequately reflects the commission’s responsibilities in the evolution of the insurance sector.
According to him, the new name is intended to eliminate confusion and better define the agency’s role as the country’s primary insurance regulator.
He noted that the insurance sector has witnessed significant changes over the years, making it necessary for the legal framework guiding the commission to be updated in line with international best practices.
NAICOM currently serves as the apex regulator that oversees insurance companies, ensuring compliance with industry regulations, promoting financial stability and protecting policyholders.
The bill expands regulatory powers
In addition to the proposed name change, the bill significantly expands the commission’s mandate.
Under the legislation, the Insurance Regulatory Commission will be empowered to ensure the effective administration, supervision, regulation, control, integrity and development of Nigeria’s insurance sector.
The bill also introduces stronger enforcement provisions aimed at improving discipline and accountability within the sector.
The new measures include higher fines for regulatory violations, the suspension of business licenses and the banning of people held responsible for the collapse of insurance institutions from holding positions in the sector.
Lawmakers said the tougher sanctions are designed to increase public confidence in Nigeria’s insurance sector and discourage misconduct.
New provisions for entities in difficulty
The bill also updates the current provisions on supervision, inspection and intervention in insurance companies in difficulty.
One of the key amendments removes the requirement for prior ministerial approval before regulators can remove or appoint directors of troubled insurance institutions.
The legislation also mandates the Minister of Finance to establish an interim management committee for the commission within 30 days of the expiration or termination of the mandate of its board of directors.
Supporters of the bill say the changes would allow regulators to respond more quickly to emerging challenges and improve corporate governance across the insurance industry.
Akpabio praises the sponsor
Following the passage of the bill, Senate President Godswill Akpabio commended Senator Abiru for sponsoring the legislation.
Akpabio said the National Assembly remains committed to strengthening Nigeria’s insurance sector through reforms that will improve regulation, investor confidence and operational efficiency.
He expressed optimism that the proposed law would reposition the sector for sustainable growth and align Nigeria’s insurance regulatory framework with global standards.
If the House of Representatives agrees with the Senate’s decision and President Tinubu assent to the bill, the National Insurance Commission will officially become the Insurance Regulatory Commission, ushering in a new phase for insurance regulation in Nigeria.
