The Senate has passed a bill to rename the National Insurance Commission (NAICOM) as the Insurance Regulatory Commission (IRC), saying the new name better reflects the agency’s regulatory role and eliminates confusion associated with the existing designation.
The legislation, titled the Insurance Regulatory Commission (Establishment) Bill, 2026, was passed on Tuesday after the Senate considered the report of the Committee on Banking, Insurance and Other Financial Institutions.
Presenting the committee’s report, its Chairman, Senator Adetokunbo Abiru (APC, Lagos East), urged the Senate to consider and adopt the report on the National Insurance Regulatory Commission (Repeal and Re-enactment) Bill, 2026 (SB. 394).
The bill, sponsored by Senator Abiru alongside members of the Senate Committee on Banking, Insurance and Other Financial Institutions, seeks to repeal the existing NAICOM Act and establish a new legal framework for the insurance regulator.
With the bill’s passage after its third reading, the National Insurance Commission will now operate as the Insurance Regulatory Commission (IRC), subject to the completion of the legislative process.
NAICOM
According to the Senate, the name change became necessary because the former name no longer accurately reflects the agency’s mandate and has created confusion considering the evolution of Nigeria’s insurance industry.
The bill also provides legal protection for the Commission and its officers against claims arising from the lawful execution of their statutory duties.
Explaining the rationale behind the legislation, Senator Abiru said the existing National Insurance Commission Act of 1997 has become outdated and no longer aligns with current realities or international regulatory standards.
“Established by the National Insurance Commission Decree of 1997, the National Insurance Commission was empowered to regulate insurance companies, brokers, and loss adjusters, ensuring they operate within set guidelines. It also mandates the Commission to protect policyholders, monitor financial solvency, and enforce industry-wide compliance.
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“Over the years, NAICOM has been instrumental in promoting compliance, enforcing standards, and fostering the development of the insurance market.
“However, despite its significant contributions, the enabling law has become obsolete, failing to align with current realities and global best practices, and unable to keep pace with the evolving nature of the insurance industry, exposing numerous gaps in the law, necessitating urgent amendments,” he said.
Abiru said the bill is designed to strengthen the Commission’s independence and enhance its regulatory authority.
“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 Bill seeks to establish the independence of the Commission and strengthen its regulatory powers, including the ability to make decisions without undue influence.
“The Bill also grants the Commission enhanced powers to exchange information and collaborate with domestic and international regulatory and supervisory authorities, issue regulations, guidelines, standards, and directives to relevant government institutions and stakeholders on insurance-related matters, and exercise strengthened resolution and intervention powers to address financially distressed insurers, protect policyholders, preserve financial stability, and facilitate the orderly resolution of failing insurance institutions in accordance with the provisions of the Bill,” he said.
He added that the legislation introduces stricter qualification requirements for members of the Commission’s governing board to ensure competent leadership.
“The National Insurance Commission (NAICOM) plays a critical role in regulating and developing Nigeria’s insurance sector, ensuring financial stability, consumer protection, and industry growth. To effectively achieve these objectives, it is essential that its Governing Board comprises individuals with the requisite expertise in insurance, risk management, finance, law, and corporate governance.
“The bill introduces clear requirements for the expertise and suitability of board members that will ensure that only competent professionals with relevant experience and integrity are appointed to guide the commission’s policies and regulatory framework,” Abiru said.
