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From Adesuwa Tsan, Abuja
The Senate and stakeholders have endorsed reforms in the financial sector through two new bills that propose to raise the Nigerian Export-Import Bank’s (NEXIM) capital base to ₦1 trillion, establish an Export Development Trust Fund and create a specialised tribunal to resolve insurance disputes swiftly and professionally.
The reforms, encapsulated in the Nigerian Export-Import Bank (Amendment) Bill, 2025 and the National Insurance Commission (Repeal) and Insurance Regulatory Commission Bill, 2025, are designed to strengthen Nigeria’s financial institutions, align them with global standards, and stimulate innovation-driven regulation.
At a public hearing on the proposed legislation on Wednesday, stakeholders from the financial, insurance, manufacturing, and academic sectors endorsed the reforms as timely and transformative. The event was convened by the Senate Committee on Banking, Insurance and Other Financial Institutions, chaired by Mukhail Adetokunbo Abiru (FCA).
Abiru said the bills represented “a crucial step in shaping the future of Nigeria’s financial system” by updating obsolete laws and providing a regulatory foundation for competitiveness and growth. He explained that the NEXIM Amendment Bill seeks to update the 1991 Act establishing the bank, while the new insurance bill replaces the 1997 NAICOM Act.
“These laws will ensure Nigeria’s financial system becomes more transparent, competitive, and globally aligned,” Abiru said. “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.”
In a message delivered by Senate Chief Whip, Tahir Monguno, Senate President Godswill Akpabio described the two bills as “a covenant with Nigeria’s economic future,” adding that they were not just legislative exercises but instruments of national renewal.
“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,” Akpabio said. “Similarly, the insurance sector must rise beyond routine paperwork to become a bulwark of trust and fairness in our economy.”
He urged lawmakers to legislate “for posterity, not convenience,” adding that history would remember the 10th Senate as one that “met the hour with clarity, courage, and conviction.”
NEXIM Managing Director Abba Bello supported the proposed amendments, saying the 33-year-old law governing the bank had become obsolete. He noted that the bank’s current capital of ₦50 billion (about $33 million) was “grossly inadequate” to support Nigeria’s expanding export ambitions under the African Continental Free Trade Area (AfCFTA).
“We fully support the proposal to raise the capital base to at least ₦500 billion, and ideally ₦1 trillion, to enable NEXIM to deliver on its mandate,” Bello said. He also backed reforms to separate the Central Bank of Nigeria’s oversight role from NEXIM’s board leadership, promote continuity in governance, and create an Export Development Fund to support export-oriented businesses.
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The Capital Market Academics of Nigeria echoed this position, urging lawmakers to set NEXIM’s minimum capital at ₦1 trillion to match peer institutions in India, China, and South Africa. “NEXIM’s undercapitalisation has limited its impact and excluded it from global credit ratings,” the association said in its position paper, also recommending a more inclusive board that includes the Chartered Institute of Bankers and the National Association of Chambers of Commerce.
The Ministry of Finance Incorporated (MOFI) supported the ₦1 trillion benchmark and clarified that the government’s shares in NEXIM should be held through MOFI, consistent with its statutory mandate as the Federal Government’s asset-holding entity.
Similarly, Commissioner for Insurance [Mr] Olusegun Ayo Omosehin described the establishment of the Export Promotion Trust Fund as “a masterstroke” that could transform the non-oil export sector. “This is a long-overdue innovation that will allow exporters to access funding for raw materials, logistics, and capital goods,” he said.
Omosehin also backed NEXIM’s inclusion of the insurance regulator on its board to enhance underwriting standards and risk management.
The Nigeria Deposit Insurance Corporation (NDIC), in its submission, requested representation on NEXIM’s board, citing its expertise in risk management. It also endorsed the higher capital base and called for stricter accountability for the proposed trust fund.
Representatives of the construction and manufacturing sectors welcomed the new Export Promotion Fund but urged that building materials, construction technology, and housing components be explicitly listed as eligible export items.
The hearing also considered the Insurance Regulatory Commission Bill, which seeks to replace the outdated 1997 NAICOM Act. Commissioner Omosehin said the proposed legislation would “reflect modern realities” by empowering the regulator to supervise digital insurance platforms, issue compliance directives, and merge failing institutions when necessary.
A key feature of the bill is the creation of an Insurance Dispute Resolution Tribunal. Stakeholders described the tribunal as a transformative reform that would enhance investor and consumer confidence. “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,” Omosehin said.
Other provisions include expanded regulatory powers, updated board composition, stricter compliance timelines for insurance levies, and a framework for regulating actuarial practice—areas stakeholders agreed were long overdue.
In his closing remarks, Senator Abiru commended all participants for their depth of engagement and reaffirmed the Senate’s resolve to deliver laws that strengthen Nigeria’s financial institutions. “Our goal is to produce legislation that strengthens institutions, inspires confidence, and positions Nigeria’s financial system for global relevance,” he said. “With your cooperation, we shall deliver reforms that make our financial system not only efficient but transformative.”
