Senate passes Bill renaming NAICOM Insurance Regulatory Commission
CHIGOZIE AMADI
The Senate has passed a bill repealing the National Insurance Commission, (NAICOM), and replacing it with the Insurance Regulatory Commission, IRC (Establishment) Act, 2026 with expanded powers.
This was sequel to the consideration of the report of its Committee on Banking, Insurance and other Financial Institutions on the NAICOM (Repeal and Enactment) Bill, 2026, chaired by Senator Adetokunbo Abiru (APC Lagos East) during Tuesday’s plenary.
Presenting the report, Abiru said the renaming was imperative 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 execution of their duties.
Abiru recalled that NAICOM was created by the National Insurance Commission Decree of 1997 to regulate insurers, brokers and loss adjusters, adding that the commission was charged with protecting policyholders, monitoring solvency and enforcing compliance, and has played a key role in developing the insurance market.
He, however, declared that the 1997 Act is outdated and no longer reflects current economic realities or global best practices.
“The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs, and development of the insurance business,” Abiru said.
He explained that the new bill seeks to establish the independence of the commission and strengthen its regulatory powers to take decisions without undue influence, adding that it also grants IRC 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 would enable the commission to provide stronger policy direction and regulatory oversight for the growth of Nigeria’s insurance sector.
