The Senate Committee on Banking, Insurance, and Other Financial Institutions is considering the establishment of a special tribunal dedicated to resolving insurance-related disputes in Nigeria.
The committee is also proposing amendments to the Nigerian Export-Import Bank (NEXIM) Act to increase the bank’s capital base from N50 billion to N1 trillion, and to establish an Export Development Trust Fund.
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NEXIM Bank, a government-owned development finance institution, provides export-related services such as financing, credit guarantees, insurance, and market information to exporters. Its primary goal is to promote export diversification and economic growth, unlike commercial banks that accept deposits and focus on a wider range of clients.
These proposals were discussed at a public hearing on Wednesday at the National Assembly, Abuja. The event brought together lawmakers and stakeholders from the insurance, financial, manufacturing, and academic sectors.
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The two bills under consideration are the Nigerian Export-Import Bank (Amendment) Bill, 2025 and the National Insurance Commission (Repeal) and Insurance Regulatory Commission Bill, 2025.
The amendment to the NEXIM Act seeks to modernise the 1991 law establishing the bank, while the new Insurance Regulatory Commission Bill aims to replace the outdated 1997 NAICOM Act.
Chairperson of the committee, Adetokunbo Abiru, said the proposed legislations are designed to modernise Nigeria’s financial framework and introduce innovation to strengthen the system.
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Mr Abiru, the senator for Lagos East Senatorial District, noted that the legislations, when passed, would make Nigeria’s financial system transparent, competitive and globally aligned.
“Effective lawmaking is never a solitary process. We are here to critically examine both bills and ensure they align with our national goals of economic transformation and financial stability. The bills would ensure Nigeria’s financial system becomes more transparent, competitive, and globally aligned,” he said.
Nigeria’s financial and insurance sectors have long faced challenges relating to weak dispute resolution mechanisms, outdated regulations, and limited access to export financing.
On insurance tribunal, the insurance sector in Nigeria has struggled with credibility, policy enforcement, and slow resolution of disputes between policyholders and insurers. Presently, most insurance disagreements are settled through conventional courts, a process often delayed by legal bottlenecks and lack of technical expertise among judges on complex insurance matters.
The proposed insurance dispute tribunal would function as a specialised court with expertise in insurance law, allowing for faster, more transparent, and fairer resolution of claims. This could improve public trust in the industry, encourage more Nigerians and businesses to take up insurance coverage, and boost overall financial inclusion.
A more reliable insurance system also helps to strengthen investor confidence, particularly in sectors like manufacturing, agriculture, and transport, where risk management is crucial.
The public hearing
Stakeholders at the hearing unanimously supported the bills, describing the reforms as long overdue.
The Managing Director of NEXIM Bank, Abba Bello, stressed that the existing law has become obsolete, limiting the bank’s ability to compete globally.
Mr Bello noted that the bank’s current capital pegged at N50 billion, approximately $33 million was not enough to support Nigeria’s expanding export ambitions, particularly 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,” he said.
The NEXIM MD also proposed reforms to separate the roles of the Central Bank of Nigeria (CBN) from NEXIM’s board leadership, promote governance continuity, and establish an Export Development Fund to support export-oriented businesses.
The Ministry of Finance Incorporated (MOFI) also supported the N1 trillion proposal, clarifying that the federal government’s shares in NEXIM should be held through MOFI in line with its statutory role as the government’s asset-holding entity.
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