The Senate has passed the Insurance Regulatory Commission (Establishment) Bill, 2026, a landmark piece of legislation that seeks to repeal and re-enact the law establishing the National Insurance Commission (NAICOM), paving the way for the agency to be renamed the Insurance Regulatory Commission (IRC).
The bill was approved after the Senate considered and adopted the report of its Committee on Banking, Insurance and Other Financial Institutions.
Presenting the committee’s report, Chairman of the Committee, Senator Adetokunbo Abiru (APC, Lagos East), said the existing National Insurance Commission Act of 1997 has become outdated and no longer reflects the realities of Nigeria’s rapidly evolving insurance sector or current global regulatory standards.
According to the Senate, the proposed name change is intended to eliminate confusion associated with the current designation while better reflecting the Commission’s core responsibility as the country’s insurance industry regulator.
The legislation also introduces legal protection for the Commission and its officials against claims arising from the lawful execution of their statutory responsibilities.
Senator Abiru noted that the existing law contains significant regulatory gaps that have limited the Commission’s effectiveness in supervising the insurance sector.
He explained that the new bill is designed to modernise Nigeria’s insurance regulatory framework by strengthening the Commission’s operational independence and enabling it to make regulatory decisions without undue external influence.
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The proposed legislation further empowers the Commission to collaborate more effectively with both domestic and international regulatory institutions through information sharing and regulatory cooperation.
In addition, the bill authorises the Commission to issue regulations, guidelines, standards and directives on insurance-related matters, while expanding its powers to intervene promptly in financially distressed insurance companies in order to protect policyholders and safeguard the stability of Nigeria’s financial system.
Lawmakers believe the reforms contained in the bill will improve regulatory oversight, promote greater confidence in the insurance industry, and align Nigeria’s insurance regulatory framework with international best practices.