The Nigerian Senate on Tuesday passed a bill to rename the National Insurance Commission (NAICOM) as the Insurance Regulatory Commission. The upper chamber approved the bill after considering the report of its Committee on Banking, Insurance and Other Financial Institutions, presented by its chairman, Senator Adetokunbo Abiru.
Senate President Godswill Akpabio announced the bill's passage after it received majority support via a voice vote. The bill was sponsored by Abiru and other members of the Senate Committee on Banking, Insurance and Other Financial Institutions.
Rationale for the name change
Presenting the committee's report, Abiru explained that the current name had become confusing due to the evolution of Nigeria's insurance industry and no longer accurately reflected the commission's regulatory mandate. NAICOM is the apex regulatory authority for Nigeria's insurance sector, responsible for ensuring compliance with insurance laws and regulations, promoting market stability, and protecting policyholders.
Tougher enforcement measures
Beyond the name change, Abiru said the bill introduces tougher enforcement measures, including higher fines, suspension of licences, and disqualification of individuals found responsible for the failure of insurance institutions from holding positions within the industry. The bill also updates provisions on supervision, inspection, and intervention to address current industry challenges, such as requiring prior ministerial approval to remove or appoint directors of failing or distressed insurance institutions.
The bill further mandates the Minister of Finance to constitute an interim management committee for the commission within 30 days of the expiration or termination of the tenure of its governing board.
Expanded mandate
Abiru said the legislation expands the commission's mandate to ensure effective administration, supervision, regulation, control, integrity, and development of insurance business in Nigeria.
After the committee report, the Senate dissolved into the Committee of the Whole, where the bill was considered clause-by-clause and passed for third reading. Akpabio commended Abiru for sponsoring the bill, assuring that the National Assembly will continue to reform the insurance industry to make it stronger and more effective. The bill will now be transmitted to the House of Representatives for concurrence before forwarding it to President Bola Tinubu for assent.
