SENATE CLEARS PATH FOR STRONGER INSURANCE REGULATOR WITH NEW BILL

The Nigerian Senate has passed the Insurance Regulatory Commission Bill, 2025, effectively repealing the outdated National Insurance Commission (NAICOM) Act of 1997.

Lawmakers said the nearly 30-year-old law no longer meets the needs of the country’s evolving insurance sector. The new legislation, which scaled third reading after adoption of a report by the Committee on Banking, Insurance and Other Financial Institutions, aims to modernise regulation, strengthen oversight and bring the industry in line with global standards.

Under the bill, NAICOM will be renamed the Insurance Regulatory Commission and granted wider powers to supervise operators, issue binding guidelines, collaborate with local and international regulators, and intervene in distressed firms to protect policyholders. It also introduces stricter corporate governance rules, including professional qualifications for board members, and tougher penalties such as higher fines, licence suspensions and disqualification of those responsible for breaches.

The bill still requires approval by the House of Representatives and assent by President Bola Tinubu before becoming law. Sponsors described the reform as essential for boosting consumer confidence, improving financial stability and supporting the growth of Nigeria’s insurance market.