Nigeria’s Senate has approved a major overhaul of the country’s insurance regulatory framework, passing legislation that will repeal the existing law establishing the National Insurance Commission (NAICOM) and pave the way for the agency to be renamed the Insurance Regulatory Commission (IRC).
The bill, known as the Insurance Regulatory Commission (Establishment) Bill, 2026, was passed on Tuesday, July 21, 2026, after lawmakers considered and adopted the report of the Senate Committee on Banking, Insurance and Other Financial Institutions.
The committee Chairman, Senator Adetokunbo Abiru (APC, Lagos East), who presented the report, said the proposed legislation had become necessary because the National Insurance Commission Act of 1997 was outdated and no longer reflected the changing realities of Nigeria’s insurance industry or evolving global regulatory standards.
The Senate said the proposed name change was intended to remove the confusion associated with the existing designation and better reflect the Commission’s role as the regulator of Nigeria’s insurance industry.
The legislation also provides legal protection for the Commission and its officers against adverse claims arising from the lawful performance of their statutory duties.
Abiru, however, noted that the existing law had become obsolete and had created significant regulatory gaps requiring urgent legislative action.
“The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs and development of the insurance business,” the lawmaker said.
He explained that the proposed law would strengthen the independence of the Commission by enabling it to make regulatory decisions without undue influence.
The bill would also expand the Commission’s powers to exchange information and collaborate with domestic and international regulatory authorities, as well as issue regulations, guidelines, standards and directives on matters relating to insurance.
According to Abiru, the new framework would further empower the regulator to intervene more effectively in financially distressed insurance companies, with the aim of protecting policyholders and safeguarding financial stability.
The Senate’s passage of the bill marks a significant step towards replacing the legal framework that has governed NAICOM since 1997 with a new law designed to address the current needs of Nigeria’s insurance sector.
