The Senate, on Tuesday, passed a bill to repeal the National Insurance Commission, NAICOM, and establish in its place the Insurance Regulatory Commission, IRC, with expanded powers to oversee Nigeria’s insurance industry.
The passage followed the consideration of the report of the Senate Committee on Banking, Insurance and Other Financial Institutions on the NAICOM (Repeal and Enactment) Bill, 2026. The report was presented by the Committee Chairman, Senator Adetokunbo Abiru, APC, Lagos East.
Abiru said the renaming became necessary because the former name had become confusing given the history and structure of the Nigerian insurance industry.
He added that the bill also seeks to protect the commission and its officers from adverse claims arising from the discharge of their regulatory duties.
Presenting the report, Abiru recalled that NAICOM was created by the National Insurance Commission Decree of 1997 to regulate insurers, brokers and loss adjusters.
The commission, he said, was charged with protecting policyholders, monitoring solvency and enforcing compliance, and has played a key role in developing the insurance market.
However, he noted that the 1997 Act is outdated and no longer reflects current economic realities or global best practices.
“The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs, and development of the insurance business,” Abiru said.
The lawmaker explained that the new bill seeks to establish the independence of the commission and strengthen its regulatory powers to take decisions without undue influence.
According to him, the IRC will have powers to exchange information with domestic and international regulatory bodies, and to issue regulations, guidelines and directives to government institutions and stakeholders.
On governance, Abiru said the bill sets clear requirements for board membership to ensure only professionals with expertise in insurance, risk management, finance, law and corporate governance are appointed.
He added that the new law is expected to provide stronger policy direction and regulatory oversight for the growth of Nigeria’s insurance sector.
The bill now awaits concurrence from the House of Representatives before transmission to the President for assent.
