The Senate yesterday took decisive steps toward transforming Nigeria’s financial landscape through sweeping legislative reforms aimed at strengthening the capital base of key institutions, enhancing regulatory oversight, and restoring public confidence in the system.
At a public hearing organised by the Senate Committee on Banking, Insurance and Other Financial Institutions, lawmakers and industry stakeholders backed proposals to raise the capital base of the Nigerian Export-Import Bank (NEXIM) to N1 trillion, establish an Export Development Trust Fund, and create a Special Tribunal for Insurance Disputes.
The hearing focused on two critical bills, the Nigerian Export-Import Bank (Amendment) Bill, 2025, and the National Insurance Commission (Repeal) and Insurance Regulatory Commission Bill, 2025, both aimed at aligning Nigeria’s financial system with global best practices.
Committee Chairman, Senator Mukhail Adetokunbo Abiru (FCA), said the reforms represented a watershed in Nigeria’s financial history.
He described the proposed laws as “a crucial step in shaping the future of Nigeria’s financial system,” adding that they would modernize outdated legal frameworks and foster innovation-driven regulation.
Abiru explained that the NEXIM Amendment Bill seeks to update the 1991 Act establishing the bank, while the Insurance Regulatory Commission Bill would replace the obsolete 1997 National Insurance Commission Act.
“Our objective is to make the financial system more transparent, competitive, and globally aligned,” he said.
He stressed that lawmaking must be collaborative, saying, “We are here to critically examine both bills and ensure they align with our national goals of economic transformation and financial stability.”
Delivering a goodwill message on behalf of Senate President Godswill Akpabio, Senate Chief Whip, Senator Tahir Monguno, said the two bills were “a covenant with Nigeria’s economic future.”
Akpabio described the reforms as instruments of national renewal, not just legislative adjustments.
“The NEXIM Bank is not just a bank; it is a bridge between our factories and the world. It must be empowered to lead, not just to lend,” he said.
He further urged the insurance industry to “rise beyond routine paperwork to become a bulwark of trust and fairness.”
He called on lawmakers to legislate “for posterity, not convenience,” so that history would record the 10th Senate as one that acted with clarity and conviction.
Managing Director of NEXIM Bank, Abba Bello, justified the amendments, saying the 33-year-old enabling law was outdated.
He explained that the current capital base of N50 billion, roughly $33 million, was grossly inadequate for the bank’s mandate, especially under the African Continental Free Trade Area (AfCFTA).
“We fully support the proposal to raise the capital base to at least N500 billion, and ideally N1 trillion, to enable NEXIM to deliver on its mandate,” Bello said.
He also supported provisions that would separate the Central Bank of Nigeria’s role from NEXIM’s board leadership, ensure continuity of governance, and establish an Export Development Fund to support export-oriented enterprises.
The Capital Market Academics of Nigeria aligned with Bello’s position, urging lawmakers to fix the minimum capital requirement at N1 trillion to match peer institutions in India, China, and South Africa.
The group said NEXIM’s undercapitalization had hindered its global competitiveness and limited its access to international credit ratings.
The Ministry of Finance Incorporated (MOFI) also backed the N1 trillion capital threshold and recommended that the Federal Government’s shares in NEXIM be held through MOFI, in accordance with its statutory mandate as the government’s asset custodian.
Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, described the proposed Export Development Trust Fund as “a masterstroke.”
He said it would unlock new opportunities in Nigeria’s non-oil export sector.
“This long-overdue innovation will help exporters access funding for raw materials, logistics, and capital goods,” he said.
He also endorsed the inclusion of the insurance regulator on NEXIM’s board to strengthen underwriting standards and risk management across the financial value chain.
The Nigeria Deposit Insurance Corporation (NDIC) in its submission called for representation on NEXIM’s board to leverage its expertise in risk management and supported stricter accountability provisions for the proposed trust fund.
Manufacturers and construction sector representatives commended the Export Promotion Fund but urged lawmakers to ensure that building materials, construction technologies, and housing components were expressly recognized as eligible export items.
Deliberations on the Insurance Regulatory Commission Bill revealed strong stakeholder support for reforms to reflect “modern realities.”
Omosehin said the bill would empower the regulator to oversee digital insurance platforms, issue compliance directives, and merge failing institutions when necessary.
A major highlight of the proposed legislation is the creation of an Insurance Dispute Resolution Tribunal.
Stakeholders described it as a transformative measure that would restore consumer trust and attract investors to the sector.
Omosehin said, “The tribunal will provide quick, affordable, and professional redress to policyholders.
“It will restore trust in the system and encourage more Nigerians to embrace insurance,” he added.
The bill also proposes broader regulatory powers, improved board structures, stricter timelines for levy compliance, and new frameworks for actuarial governance.
In his closing remarks, Senator Abiru commended the depth of engagement and reaffirmed the Senate’s commitment to enacting laws that strengthen Nigeria’s financial institutions.
If passed, the two bills, with their provisions for recapitalization, a dedicated trust fund, and a specialized tribunal, could usher in one of the most far-reaching overhauls of Nigeria’s financial regulatory framework in decades.
