The Senate has passed the Insurance Regulatory Commission Bill, 2025, repealing the nearly three-decade-old National Insurance Commission Act of 1997 in a move aimed at modernising Nigeria’s insurance regulatory framework and strengthening oversight of the industry.
The bill, which passed third reading after lawmakers adopted the report of the Senate Committee on Banking, Insurance and Other Financial Institutions, will replace the existing law if approved by the House of Representatives and signed by President Bola Tinubu.
A major provision of the legislation renames the National Insurance Commission as the Insurance Regulatory Commission, reflecting what lawmakers describe as a broader regulatory mandate.
Presenting the committee’s report, Senator Tokunbo Abiru said the current law had become outdated and no longer addressed the realities of Nigeria’s insurance market.
He explained that the committee consulted extensively with stakeholders, including through a public hearing and the review of more than 50 memoranda submitted by industry participants before recommending the bill for passage.
According to Abiru, the new legislation grants the regulator wider powers to supervise insurance operators, issue regulations, enforce compliance and collaborate with local and international regulatory bodies.
The bill also empowers the commission to intervene in distressed insurance companies to protect policyholders and preserve financial stability.
It introduces stricter corporate governance standards by requiring professional qualifications and fit-and-proper criteria for members of the commission’s governing board while prescribing tougher penalties for regulatory breaches, including higher fines, licence suspensions and disqualification of erring individuals.
The proposed law also updates supervisory and inspection powers to enable the regulator to respond more effectively to emerging risks and developments within the insurance sector.
Another provision authorises the Minister of Finance to establish an interim management committee within 30 days whenever the commission’s governing board expires or is dissolved, ensuring continuity in its operations.
The legislation further expands the commission’s statutory responsibilities to include the administration, supervision, regulation, control, integrity and development of Nigeria’s insurance business.
Senator Osita Izunaso described the bill as a comprehensive reform that would strengthen regulation, improve governance and provide Nigeria with a more robust legal framework for the insurance industry.
If enacted, the new law is expected to support ongoing reforms in the insurance sector, strengthen consumer protection and align Nigeria’s regulatory framework with international standards.
