Senate pass new Insurance regulatory commission bill

By Taiwo Scholarstica

The Senate on Tuesday passed the Insurance Regulatory Commission Bill, 2025, which seeks to repeal the National Insurance Commission Act, 1997, and introduce a new framework for the regulation of Nigeria’s insurance industry.

The bill scaled third reading after the Senate considered and adopted the report of the Committee on Banking, Insurance and Other Financial Institutions.

The proposed legislation is designed to bring Nigeria’s insurance regulatory system in line with current realities, strengthen oversight and improve the sector’s compliance with global standards.

If assented to by President Bola Tinubu, the bill will repeal the almost 30-year-old NAICOM Act, expand the powers of the insurance regulator, impose tougher penalties for breaches and change the name of the National Insurance Commission to the Insurance Regulatory Commission.

Presenting the committee’s report, its Chairman, Senator Tokunbo Abiru (APC, Lagos East), said the existing legislation had become outdated and was no longer adequate to address the changing needs of the insurance sector.

Abiru disclosed that the committee conducted a public hearing, consulted major stakeholders and considered over 50 memoranda before arriving at its recommendations.

He said the new law would enhance the independence of the regulator and give it greater authority to perform its functions without undue interference.

The commission, he added, would have the power to work with regulatory authorities within and outside Nigeria, issue regulations and directives, and intervene in troubled insurance companies where necessary to protect policyholders and preserve financial stability.

The lawmaker said the bill also strengthens corporate governance requirements by setting professional qualification and suitability standards for members of the commission’s governing board.

It further introduces stronger enforcement provisions, including higher fines, licence suspension, additional liabilities and the disqualification of persons found responsible for regulatory violations.

According to Abiru, the proposed legislation also updates the provisions governing supervision, inspection and regulatory intervention, giving the commission more tools to tackle emerging issues within the industry.

He said the bill provides for the Minister of Finance to constitute an interim management committee within 30 days after the expiration or termination of the governing board’s tenure.

The legislation also broadens the commission’s objectives to cover the effective administration, supervision, regulation, control, integrity and development of insurance business in Nigeria.

Contributing to the debate, Senator Osita Izunaso, representing Imo West, praised the committee for what he described as a comprehensive reform of the sector.

“Having looked at the whole synopsis of the report of this bill, I want to commend the committee. For the first time, we are going to have holistic legislation on the issue of insurance.”

“Insurance companies are now being properly regulated by this bill,” he said.

Also speaking, Senator Adams Oshiomhole (APC, Edo North) said the bill was coming at a period when financial regulators were working to increase insurance penetration and expand its contribution to the Nigerian economy.

“It is of public knowledge that the CBN and other authorities are trying to expand the role of insurance. Clearly, a robust regulation is required to avoid abuse and to ensure that all parties involved are protected.”

“Having listened to the lead speaker, I am convinced that the report is well thought out, well thought through, and merits the support and endorsement of the Senate,” he added.

The bill will now be sent to the House of Representatives for concurrence. If approved by the House, it will be forwarded to the President for assent.