Senate Passes Bill to Strengthen Insurance Regulation

On Tuesday, the Senate passed the Insurance Regulatory Commission Bill, 2025, which aims to repeal the National Insurance Commission Act, 1997, and establish a new regulatory framework for Nigeria's insurance industry. The bill, which passed its third reading after the Senate Committee on Banking, Insurance and Other Financial Institutions presented its report, seeks to modernize insurance regulation and align it with global best practices.

If signed by President Bola Tinubu, the legislation will replace the nearly three-decade-old NAICOM Act, strengthen the powers of the insurance regulator, and introduce tougher sanctions for regulatory breaches. Senator Tokunbo Abiru, the committee chairman, stated that the existing law is outdated and does not reflect the current realities of the industry.

The proposed bill aims to enhance the regulator's independence, allow collaboration with local and international bodies, and enforce stricter corporate governance standards. It also includes provisions for an interim management committee and protects the commission and its officers from adverse claims during lawful duty execution.