Senate Repeals 1997 NAICOM Act for New Insurance Bill

The Nigerian Senate has repealed the National Insurance Commission Act of 1997, which had been in place for nearly three decades, citing its inadequacy in regulating the evolving insurance industry. On Tuesday, the Senate passed the Insurance Regulatory Commission Bill, 2025, aimed at establishing a modern legal framework for the insurance sector.

The bill, which has passed its third reading after the Senate adopted the Committee on Banking, Insurance and Other Financial Institutions' report, will replace the existing NAICOM Act if approved by the House of Representatives and signed by President Bola Tinubu. The proposed law will rename the National Insurance Commission to the Insurance Regulatory Commission and grant it broader powers to supervise operators, enforce compliance, and impose stricter penalties for violations.

Senator Tokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, stated that the new legislation reflects the current realities of Nigeria's insurance market and aims to enhance the regulator's independence and authority.