Senate approves Bill to rename NAICOM as Insurance Regulatory Commission

The Senate on Tuesday passed a bill seeking to change the name of the National Insurance Commission (NAICOM) to the Insurance Regulatory Commission, as part of wider reforms aimed at strengthening the regulation of Nigeria’s insurance industry.

The legislation was passed after the Senate considered and adopted the report of the Committee on Banking, Insurance and Other Financial Institutions, presented by its Chairman, Tokunbo Abiru.

The Senate President, Godswill Akpabio, announced the passage of the bill after lawmakers overwhelmingly endorsed it through a voice vote.

The bill, sponsored by

Abiru and other members of the Senate Committee on Banking, Insurance and Other Financial Institutions, seeks to modernise the legal framework guiding insurance regulation in the country.

Presenting the committee’s report, Abiru said the proposed change of name became necessary because the existing designation had become outdated and no longer reflects the commission’s role in the evolving insurance sector.

He said the current name had become confusing “in light of the evolution of Nigeria’s insurance industry” and “no longer accurately reflects the commission’s regulatory mandate.”

The commission remains the apex regulator of Nigeria’s insurance industry, with responsibility for enforcing insurance laws, ensuring market stability and safeguarding the interests of policyholders.

Beyond the proposed renaming, Abiru said the bill introduces stricter regulatory and enforcement measures to improve accountability within the sector.

According to him, the legislation provides for stiffer sanctions, including higher fines, suspension of operating licences and the disqualification of individuals found culpable in the collapse of insurance institutions from occupying positions within the industry.

He added that the bill also updates provisions relating to supervision, inspection and regulatory intervention to address emerging challenges in the sector, including removing the requirement for prior ministerial approval before directors of failing or distressed insurance institutions can be appointed or removed.

Abiru further explained that the proposed law mandates the Minister of Finance to constitute an interim management committee for the commission within 30 days after the expiration or termination of the tenure of its governing board.

He said the bill also broadens the commission’s responsibilities to ensure the effective administration, supervision, regulation, control, integrity and development of insurance business in Nigeria.

Following the presentation of the report, the Senate resolved into the Committee of the Whole, where lawmakers considered the bill clause-by-clause before approving it for third reading.

Commending the sponsor after its passage, Akpabio said the National Assembly would continue to reform the insurance sector to make it “stronger and more effective than it inherited.”

The bill will now be transmitted to the House of Representatives for concurrence before being forwarded to President Bola Tinubu for assent.