The Nigerian Senate has passed the 2024 Nigerian Insurance Industry Reform Bill, marking a significant step toward overhauling the regulatory framework of the country’s insurance sector.
The bill was approved during Tuesday’s plenary session, following the presentation of a report by the Committee on Banking, Insurance, and Other Financial Institutions. Senator Abiru Adetokunbo, the committee chairman, highlighted that the proposed legislation consolidates various existing laws governing insurance practices in Nigeria.
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According to Senator Adetokunbo, the bill merges the provisions of the Insurance Act 2003, the Marine Insurance Act, the Motor Vehicles Third Party Insurance Act, the National Insurance Corporation Act, and the Nigerian Reinsurance Corporation Act. The initiative aims to simplify regulation and foster a future where Nigerians can benefit from a more dynamic and transparent insurance sector.
“By consolidating these laws, the bill seeks to provide a robust legal framework for the industry, ensuring better services for Nigerians and boosting confidence in the insurance sector,” Senator Adetokunbo said.
However, some senators expressed concerns about specific provisions in the bill, particularly the proposed minimum capital requirement of N45 billion for reinsurance businesses. They argued that the current economic challenges could make this threshold burdensome and advocated maintaining the existing capital requirements.
Senators Jimoh Ibrahim (Ondo South), Binos Yaroe (Adamawa South), and Seriake Dickson (Bayelsa West) were among those who called for a cautious approach.
Presiding over the session, Deputy Senate President Jibrin Barau described the passage of the bill as a transformative step for Nigeria’s financial ecosystem. “This legislation will revolutionize the insurance sector and enhance its contribution to the nation’s economy,” Senator Barau said.
The reform bill is expected to create a more efficient and competitive insurance industry, fostering economic growth and ensuring better protection for policyholders across the country.