Nigeria’s insurance regulator is set for a rebrand and an expanded mandate, after the Senate passed a bill on Tuesday, 21 July 2026, to repeal the National Insurance Commission (NAICOM) Act of 1997 and replace it with the Insurance Regulatory Commission (Establishment) Act. The bill passed for third reading following the Senate’s consideration of a report from its Committee on Banking, Insurance and Other Financial Institutions, chaired by Senator Adetokunbo Abiru.
Presenting the committee’s report, Abiru said the legislation had become necessary because the existing 1997 Act was outdated and no longer reflected the realities of Nigeria’s evolving insurance industry or current global regulatory standards, adding that the old law contains regulatory gaps that no longer address the sector’s changing needs. If signed into law by President Bola Tinubu, the bill will replace the nearly three-decade-old NAICOM Act, strengthen the powers of the insurance regulator, and introduce tougher sanctions for regulatory breaches.
Under the new framework, the commission would be empowered to collaborate with local and international regulatory bodies, issue regulations and directives, and intervene in distressed insurance institutions to protect policyholders and maintain financial stability. The bill also introduces stricter corporate governance requirements, including prescribed professional qualifications and suitability standards for members of the commission’s governing board, along with tougher enforcement measures such as stiffer fines, licence suspensions, and disqualification of individuals found responsible for regulatory failures.
Following the bill’s passage, NAICOM applauded the Senate leadership and Abiru for their role in advancing the legislation, describing it as a major milestone for strengthening regulatory oversight, transparency and accountability in the insurance sector. The Commission said the reforms would help deepen public confidence, attract investment, and support sustainable growth for policyholders, operators and the broader economy. NAICOM credited the vision and collaborative effort behind the bill, and reaffirmed its readiness to implement the new law’s provisions once signed, while continuing to work with industry stakeholders to position insurance as a driver of national development.
Explaining the reasoning for the accompanying name change, the Senate said the shift from NAICOM to the Insurance Regulatory Commission was necessary given confusion tied to the former name’s history and the insurance industry’s current structure. The rebrand takes effect alongside the law’s substantive reforms once the bill completes the legislative process and receives presidential assent.