BY NGOZI ONYEAKUSI

The Senate on Tuesday passed the Insurance Regulatory Commission Bill, 2025, explaining that the repeal of the National Insurance Commission (NAICOM) Act, 1997, had become necessary because the existing law no longer reflects the realities of Nigeria’s evolving insurance industry.

The bill, which scaled third reading after the Senate considered and adopted the report of the Committee on Banking, Insurance and Other Financial Institutions, seeks to establish a new legal framework for regulating the insurance sector and strengthening the powers of the industry regulator.

If assented to by President Bola Ahmed Tinubu, the legislation will repeal the nearly three-decade-old NAICOM Act, rename the National Insurance Commission as the Insurance Regulatory Commission (IRC), enhance the regulator’s independence and introduce stiffer sanctions for regulatory infractions.

Presenting the committee’s report, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Tokunbo Abiru (APC, Lagos East), said the current law had become outdated and was no longer adequate to address the changing dynamics and growing complexities of the insurance industry.

According to him, the proposed legislation is designed to modernise insurance regulation, strengthen oversight, improve corporate governance and align Nigeria’s insurance sector with global best practices.

Abiru disclosed that the committee undertook extensive consultations before recommending the bill for passage. He said a public hearing was held during which key stakeholders made submissions, while more than 50 memoranda were received and carefully reviewed.

He noted that one of the key objectives of the bill is to strengthen the operational independence of the regulator by granting it broader statutory powers to effectively supervise, regulate and promote the growth of the insurance industry without undue interference.

The legislation is also expected to enhance consumer protection, improve compliance with regulatory standards, boost investors’ confidence and create a more resilient insurance market capable of supporting Nigeria’s economic development.

The bill now awaits presidential assent before it becomes law.