The Senate has passed the Insurance Regulatory Commission (Establishment) Bill, 2026, a landmark piece of legislation that seeks to repeal and replace the National Insurance Commission (NAICOM) Act of 1997, while renaming the industry regulator as the Insurance Regulatory Commission (IRC).
The bill, which was approved after the Senate adopted the report of its Committee on Banking, Insurance and Other Financial Institutions, is aimed at modernising Nigeria’s insurance regulatory framework in line with current industry realities and international best practices.
If assented to by President Bola Tinubu, the legislation will replace the nearly three-decade-old law establishing NAICOM, expand the regulator’s powers, introduce stiffer sanctions for regulatory violations, and formally change the agency’s name to the Insurance Regulatory Commission.
Presenting the committee’s report, Adetokunbo Abiru, its chairman, said the review had become necessary because the existing law no longer adequately supports the changing dynamics of Nigeria’s insurance sector or aligns with global regulatory standards.
According to him, the 1997 Act has become obsolete, leaving significant regulatory gaps that require urgent legislative action to address emerging developments within the industry.
“The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs and development of the insurance business,” Abiru noted.
He explained that one of the major objectives of the proposed legislation is to strengthen the operational independence of the regulator by enabling it to take regulatory decisions without undue external influence.
The senator also noted that the bill would empower the Commission to issue regulations, guidelines, standards and directives relating to insurance operations, while enhancing its ability to collaborate and exchange information with local and international regulatory authorities.
In addition, the legislation gives the regulator wider powers to intervene in financially distressed insurance companies to safeguard policyholders’ interests and maintain the stability of the insurance sector.
The Senate further stated that the proposed change of name from the National Insurance Commission to the Insurance Regulatory Commission is intended to eliminate confusion surrounding the agency’s current designation and more accurately reflect its core responsibility as the country’s insurance regulator.
The bill also includes provisions granting legal protection to the Commission and its officials against claims arising from actions taken in the lawful discharge of their statutory responsibilities.
