Senate Approves Legislation to Change Name of NAICOM

The Senate has given its approval to a bill that seeks to rebrand the National Insurance Commission (NAICOM) as the Insurance Regulatory Commission, citing the need for a name change due to confusion stemming from the history and composition of the Nigerian insurance industry.

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This change is intended to provide protection for the Commission and its officers against potential claims arising from the execution of their duties, according to the Senate.

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The Senate Committee on Banking, Insurance and other Financial Institutions presented the National Insurance Regulatory Commission (Repeal & Enactment) Bill, 2026 (SB. 394), which was subsequently passed on Tuesday, marking a significant milestone in the Commission's rebranding efforts.

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Sponsored by Senator Mukhail Adetokunbo Abiru, alongside all members of the Senate Committee on Banking, Insurance and Other Financial Institutions, the bill has now officially transformed the National Insurance Commission, NAICOM, into the Insurance Regulatory Commission, IRC, following its third reading and passage.

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Senator Adetokunbo Abiru, who chairs the Committee, presented the report, highlighting that the National Insurance Commission was established by the National Insurance Commission Decree of 1997 to regulate insurance companies, brokers, and loss adjusters, and to protect policyholders, monitor financial solvency, and enforce industry-wide compliance.

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The Commission has played a crucial role in promoting compliance, enforcing standards, and fostering the development of the insurance market over the years, but its enabling law has become outdated and fails to align with current realities and global best practices.

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According to Senator Abiru, the current National Insurance Commission Act 1997 is no longer effective in addressing the emerging economic growth, needs, and development of the insurance business, necessitating urgent amendments to the law.

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The Bill aims to establish the independence of the Commission, strengthen its regulatory powers, and grant it enhanced powers to exchange information and collaborate with domestic and international regulatory and supervisory authorities.

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The proposed legislation also seeks to issue regulations, guidelines, standards, and directives to relevant government institutions and stakeholders on insurance-related matters, and to exercise strengthened resolution and intervention powers to address financially distressed insurers.

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The National Insurance Commission (NAICOM) plays a vital role in regulating and developing Nigeria's insurance sector, ensuring financial stability, consumer protection, and industry growth, and the bill introduces clear requirements for the expertise and suitability of board members to guide the commission's policies and regulatory framework.