The Senate on Tuesday passed a bill seeking to rename the National Insurance Commission (NAICOM) as the Insurance Regulatory Commission (IRC) as part of efforts to strengthen the regulation and oversight of Nigeria’s insurance industry.
The bill was approved after lawmakers considered the report of the Senate Committee on Banking, Insurance and Other Financial Institutions during plenary.
If eventually signed into law, the legislation will not only change the commission’s name but also expand its regulatory powers, introduce tougher enforcement measures and modernise Nigeria’s insurance regulatory framework.
Senate approves bill
The report of the committee was presented by its Chairman, Senator Adetokunbo Abiru, who is also the sponsor of the bill alongside other members of the committee.
Following deliberations, Senate President Godswill Akpabio put the bill to a voice vote, with lawmakers overwhelmingly supporting its passage.
The bill subsequently passed third reading after the Senate resolved into the Committee of the Whole to consider it clause-by-clause.
The legislation will now proceed to the House of Representatives for concurrence before being transmitted to President Bola Tinubu for presidential assent.
Why the commission is being renamed
Presenting the committee’s report, Abiru said the proposed change of name became necessary because the current designation no longer adequately reflects the commission’s responsibilities in the evolving insurance industry.
According to him, the new name is intended to eliminate confusion and better define the agency’s role as the country’s primary insurance regulator.
He noted that the insurance sector has witnessed significant changes over the years, making it necessary for the legal framework guiding the commission to be updated in line with international best practices.
NAICOM currently serves as the apex regulatory authority overseeing insurance companies, ensuring compliance with industry regulations, promoting financial stability and protecting policyholders.
Bill expands regulatory powers
Beyond the proposed name change, the bill significantly broadens the commission’s mandate.
Under the legislation, the Insurance Regulatory Commission will be empowered to ensure the effective administration, supervision, regulation, control, integrity and development of Nigeria’s insurance industry.
The bill also introduces stronger enforcement provisions aimed at improving discipline and accountability within the sector.
Among the new measures are higher financial penalties for regulatory violations, suspension of operating licences and the disqualification of individuals found responsible for the collapse of insurance institutions from occupying positions within the industry.
Lawmakers said the tougher sanctions are designed to enhance public confidence in Nigeria’s insurance sector and discourage misconduct.
New provisions for distressed institutions
The bill also updates existing provisions relating to the supervision, inspection and intervention in troubled insurance companies.
One of the key amendments removes the requirement for prior ministerial approval before regulators can remove or appoint directors in distressed insurance institutions.
The legislation further mandates the Minister of Finance to constitute an interim management committee for the commission within 30 days whenever the tenure of its governing board expires or is terminated.
Supporters of the bill said the changes would enable regulators to respond more quickly to emerging challenges and improve corporate governance across the insurance industry.
Akpabio commends sponsor
Following the passage of the bill, Senate President Godswill Akpabio commended Senator Abiru for sponsoring the legislation.
Akpabio said the National Assembly remains committed to strengthening Nigeria’s insurance industry through reforms that will improve regulation, investor confidence and operational efficiency.
He expressed optimism that the proposed law would reposition the sector for sustainable growth and align Nigeria’s insurance regulatory framework with global standards.
If the House of Representatives concurs with the Senate’s decision and President Tinubu assents to the bill, the National Insurance Commission will officially become the Insurance Regulatory Commission, ushering in a new phase for insurance regulation in Nigeria.