Senate approves 2024 Nigerian Insurance Industry Reform Bill
The Nigerian Senate has passed the 2024 Insurance Industry Reform Bill, following the adoption of a report by the Committee on Banking, Insurance, and Other Financial Institutions.
The report was presented by the committee’s chairman, Senator Abiru Adetokunbo (APC-Lagos) at plenary on Tuesday.
Senator Adetokunbo explained that the bill aims to consolidate various existing legislations regulating the insurance industry in Nigeria, including 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.
He highlighted that one of the bill’s primary objectives is to strengthen Nigeria’s insurance sector and create a robust legal and regulatory framework to help the industry contribute to the country’s economic growth. Adetokunbo emphasized the importance of risk-based supervision, noting that the current rule-based system is outdated and inadequate to address contemporary challenges.
During the public hearing, stakeholders expressed widespread support for the bill, agreeing that existing laws have become obsolete and hinder the industry’s ability to compete globally. He further explained that the current laws lack provisions to foster growth, innovation, and competitiveness in the industry.
While discussing the bill, Senator Jimoh Ibrahim (APC-Ondo South) raised concerns about the proposed minimum capital requirements for reinsurance businesses, suggesting that the ₦45 billion figure may be too high given the current economic climate. However, the Senate did not endorse this proposal during the clause-by-clause review.
Deputy Senate President, Senator Barau Jibrin (APC-Kano North), commended the committee for its work and expressed confidence that the bill, once approved by the House of Representatives and signed by the President, would help shape Nigeria’s economy for the better.
He emphasized that the reform aligns with contemporary realities and will restructure the insurance sector to better meet the country’s evolving needs.
Proofreading by Uchechi Ojo, Sub-editor at NeptunePrime.
Follow the Neptune Prime channel on WhatsApp: https://whatsapp.com/channel/0029Va74ZvU2v1IqKByXoX3d
Do you have breaking news, interview request, opinion, suggestion, or want your event covered? Email us at neptuneprime2233@gmail.com
