The Senate has passed a bill seeking to rename the National Insurance Commission (NAICOM) as the Insurance Regulatory Commission (IRC).
Lawmakers said the proposed change is necessary to eliminate confusion surrounding the commission’s current name, noting that the new designation more accurately reflects its regulatory role within Nigeria’s insurance industry.
The bill, titled the Insurance Regulatory Commission (Establishment) Bill, 2026, was passed following the consideration of a report presented by the Senate Committee on Banking, Insurance and Other Financial Institutions, chaired by Senator Adetokunbo Abiru.
The legislation seeks to repeal and re-enact the existing law establishing NAICOM, replacing it with a new legal framework for the proposed Insurance Regulatory Commission (IRC).
Senator Abiru said, “That the Senate Receive and Consider the Report of the Committee on Banking, Insurance and Other Financial Institutions on the National Insurance Regulatory Commission (Repeal & Enactment) Bill, 2026 (SB. 394.”
The bill was sponsored by Senator Mukhail Adetokunbo Abiru and co-sponsored by all members of the Senate Committee on Banking, Insurance and Other Financial Institutions.
Following its third reading and passage by the Senate, the legislation formally provides for the National Insurance Commission (NAICOM) to be renamed the Insurance Regulatory Commission (IRC), subject to the completion of the legislative process and presidential assent.
BACKSTORY:
The National Insurance Commission (NAICOM) was established under the National Insurance Commission Act of 1997 as the primary regulator of Nigeria’s insurance industry. The commission is responsible for licensing and supervising insurance companies, protecting policyholders, ensuring compliance with industry regulations, and promoting the growth and stability of the insurance sector.
Over the years, stakeholders have called for reforms to strengthen insurance regulation in Nigeria, citing the need to modernise the legal framework governing the industry. Despite being one of Africa’s largest economies, Nigeria’s insurance penetration remains relatively low, prompting regulators and policymakers to introduce measures aimed at improving public confidence, expanding insurance coverage, and attracting investment into the sector.
The Insurance Regulatory Commission (Establishment) Bill, 2026 forms part of these broader reform efforts. According to lawmakers, the proposed change from National Insurance Commission (NAICOM) to Insurance Regulatory Commission (IRC) is intended to provide greater clarity about the agency’s regulatory mandate and align its identity with international regulatory standards.
Beyond the name change, the bill seeks to repeal and re-enact the existing law establishing NAICOM, introducing a revised legal framework for regulating the insurance industry. The legislation is also expected to strengthen the commission’s oversight powers, improve consumer protection, enhance corporate governance within the insurance sector, and address emerging developments in insurance and financial services.
Although the Senate has passed the bill, it must also be approved by the House of Representatives (if not already passed in identical form) and receive presidential assent before it becomes law. Until that process is completed, the regulator will continue to operate as the National Insurance Commission (NAICOM) under the existing legal framework.
