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This updates the image to the latest ngircd version. I found it easiest to just go to a newer version of ubuntu for this since the default repository contains the newest version:
https://packages.ubuntu.com/search?keywords=ngircd&searchon=names
I updated the configuration with the changes in the latest sample configuration from the ngircd project. I went back to the default IP binding since ngircd was complaining about being unable to bind to 192.168.0.1 on startup. I also made PAM optional since otherwise unregistered access would no longer be possible. All other settings remain unchanged/default.
Unfortunately, busybox-syslogd behaves differently now. Something in the installation doesn't work quite as intended. I found that this can be easily worked around by just starting syslogd manually. Although probably not intended, this works just fine. The place where it writes the log also changed for whatever reason.