Senate Passes Bill to Overhaul Nigeria's Insurance Regulation

On Tuesday, the Nigerian Senate passed a bill to repeal the National Insurance Commission (NAICOM) Act of 1997, aiming to overhaul the insurance regulatory framework in Nigeria. The legislation, which was presented by the Senate Committee on Banking, Insurance, and Financial Institutions, seeks to modernize insurance regulations and strengthen oversight to align with global best practices.

The bill introduces tougher sanctions for regulatory breaches and renames NAICOM to the Insurance Regulatory Commission. Senate Committee Chairman Tokunbo Abiru emphasized that the existing law is outdated and does not reflect the current realities of Nigeria's evolving insurance industry.

The committee engaged stakeholders and reviewed 50 memoranda before recommending the bill's passage. The proposed law also seeks to enhance the commission's independence and empower it to collaborate with local and international regulatory bodies.

Additionally, it includes provisions for stricter corporate governance and professional qualifications for board members. The bill will be transmitted to the House of Representatives for concurrence before being forwarded to President Bola Tinubu for assent.