The Nigerian Senate has proposed far-reaching reforms aimed at strengthening the country’s financial ecosystem, with a focus on boosting the capacity of the Nigerian Export-Import Bank (NEXIM), revitalizing the insurance sector, and fostering the growth of non-oil exports. These initiatives are part of two critical pieces of legislation: the Nigerian Export-Import Bank (Amendment) Bill, 2025, and the National Insurance Commission (Repeal) and Insurance Regulatory Commission Bill, 2025.
NEXIM’s Capital Base to Increase to N1 Trillion
In one of the most significant proposed reforms, the Senate is seeking to raise the capital base of NEXIM Bank to N1 trillion, a dramatic increase from the bank’s current capital of N50 billion (approximately $33 million). The move is designed to align NEXIM’s capacity with Nigeria’s growing export ambitions, particularly under the African Continental Free Trade Area (AfCFTA), and to position the bank as a key player in supporting Nigeria’s export sector.
The proposed capital hike aims to address the limitations posed by NEXIM’s current financial standing, which has hindered its ability to access global credit ratings and effectively meet the needs of the country’s expanding export market. NEXIM Managing Director, Abba Bello, emphasized that the bank's 33-year-old framework, established by the 1991 NEXIM Act, is outdated and no longer fit for purpose in today’s global economic environment.
The Senate is also considering the establishment of an Export Development Trust Fund to support export-oriented businesses, a move that would provide funding for raw materials, logistics, and capital goods. The proposed fund has been lauded by various stakeholders, including the Commissioner for Insurance, Olusegun Ayo Omosehin, who described it as a "masterstroke" for transforming Nigeria’s non-oil export sector.
A New Insurance Regulatory Framework
The second major reform is the creation of a new Insurance Regulatory Commission to replace the outdated 1997 National Insurance Commission (NAICOM) Act. This bill aims to modernize Nigeria’s insurance laws and regulatory framework, empowering the industry to keep pace with digital transformation and global best practices. Among the key provisions of the bill is the establishment of a specialized Insurance Dispute Resolution Tribunal, which stakeholders believe will enhance consumer confidence and encourage more Nigerians to embrace insurance.
Omosehin noted that the new Insurance Regulatory Commission Bill would address modern realities by expanding the regulator’s role to supervise digital insurance platforms, issue compliance directives, and even merge failing insurance companies. This is seen as a much-needed reform, especially in a sector that has long struggled with issues of trust, transparency, and accessibility for ordinary Nigerians.
A Commitment to Financial Stability and Global Relevance
In his opening remarks at the public hearing organized by the Senate Committee on Banking, Insurance, and Other Financial Institutions, Senator Adetokunbo Abiru (APC, Lagos East) emphasized that these bills represent a critical step towards shaping the future of Nigeria’s financial system. He highlighted that the NEXIM Amendment Bill would update the 1991 Act to better align with global standards, while the Insurance Regulatory Commission Bill would modernize the country’s approach to insurance regulation.
Abiru stressed that effective lawmaking is not a solitary process and reiterated the importance of robust stakeholder engagement. He called on lawmakers to work collaboratively to ensure that both bills align with Nigeria's broader goals of economic transformation and financial stability.
Strong Support for the Proposed Reforms
The proposed reforms have garnered widespread support from various sectors, including financial institutions, manufacturing, and academia. The Capital Market Academics of Nigeria has advocated for raising NEXIM’s minimum capital to N1 trillion, citing the stronger financial standing of peer institutions in countries like India, China, and South Africa.
The Nigeria Deposit Insurance Corporation (NDIC) also backed the proposed reforms, including the higher capital base and the creation of the Export Development Trust Fund. NDIC officials urged that the corporation be included on the NEXIM board, citing its expertise in risk management.
The construction and manufacturing sectors also voiced support for the Export Promotion Trust Fund, urging lawmakers to ensure that building materials, construction technology, and housing components are explicitly listed as eligible export items.
Insurance Dispute Resolution Tribunal: A Transformative Step
One of the most highly anticipated features of the new Insurance Regulatory Commission Bill is the creation of an Insurance Dispute Resolution Tribunal. This tribunal is designed to provide quick, affordable, and professional redress to policyholders, addressing a major gap in the current system. It aims to restore trust in the insurance sector and provide a more transparent, efficient process for resolving disputes.
Stakeholders agree that the establishment of this tribunal would be transformative for the industry, offering a more accessible avenue for Nigerians to seek redress and ensuring a higher level of accountability within the sector.
Conclusion: Shaping Nigeria’s Financial Future
The proposed legislative changes represent a bold vision for Nigeria’s financial future. With the potential to overhaul the country’s export financing system and modernize the insurance industry, these reforms are aimed at positioning Nigeria as a global player in financial markets. As deliberations continue, Senator Abiru reaffirmed the Senate’s commitment to passing laws that would strengthen Nigeria’s financial institutions and inspire greater confidence in the country’s economic system.
The Senate's focus on creating a more transparent, competitive, and globally aligned financial system could have long-term benefits for Nigeria's economy. If enacted, these reforms could mark a significant milestone in Nigeria’s journey toward becoming a more resilient and globally integrated economy.