The Senate has passed the Insurance Regulatory Commission (Establishment) Bill, 2026, repealing and re-enacting the law establishing the National Insurance Commission (NAICOM) and 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 Senator Adetokunbo Abiru (APC, Lagos East) said the review of the law became necessary because the National Insurance Commission Act of 1997 had become obsolete and no longer reflected the realities of Nigeria’s fast-changing insurance industry or aligned with global regulatory standards.
Abiru explained that the proposed name change is intended to eliminate confusion surrounding the current designation and better define the agency’s core responsibility as the nation’s insurance regulator.
He noted that the outdated law had created significant regulatory gaps, making legislative intervention imperative.
"The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs and development of the insurance business," the senator said.
According to him, the new legislation is designed to strengthen the Commission’s independence by enabling it to take regulatory decisions without undue external interference.
The bill also empowers the Commission to issue regulations, guidelines, standards and directives on insurance matters, while enhancing its ability to exchange information and collaborate with both local and international regulatory authorities.
In addition, the legislation grants legal protection to the Commission and its officials against liabilities arising from the lawful discharge of their statutory responsibilities.
The proposed law further gives the Commission greater authority to intervene in financially distressed insurance companies to safeguard policyholders, strengthen industry oversight and promote the stability of Nigeria’s financial system.
