The House of Representatives has accused the National Insurance Commission (NAICOM) of failing in its regulatory role, saying the lapse allowed widespread financial infractions by 25 insurance firms operating in Nigeria.
This revelation came during an ongoing investigation by the House Sub-Committee on Capital Market and Institutions, which is probing alleged violations by the affected companies. The Chairman of the Sub-Committee, Hon. Kwamoti Laori, said NAICOM’s failure to properly supervise the industry led to a situation where billions of naira in revenue may have been lost by the Federal Government.
Laori, who represents Demsa/Numan/Lamurde Federal Constituency of Adamawa State, said during a meeting at the National Assembly in Abuja that the committee had received several petitions detailing financial misconduct by the companies.
He said: “I am not holding brief for NAICOM. But I think if they are doing their job, we will not be here talking about infractions committed by these companies. So, I expect them to sit up. It’s because there are certain lapses somewhere that we are doing what we are doing here in terms of investigation.”
He explained that the committee was mandated to review petitions bordering on regulatory breaches by the companies, especially around failure to comply with statutory requirements, non-payment of claims, and poor financial reporting. He also noted that the alleged infractions had led to significant losses for the government.
“Each of the companies has been served with the specific allegations against them, including the financial liabilities they owe. We want them to either accept responsibility or debunk the claims,” Laori said.
He added that while some of the companies had responded, others had secured restraining orders from the courts to stop the investigations.
In response, the Nigerian Insurers Association (NIA), the umbrella body for the affected firms, issued a statement defending the actions of its members. The statement was signed by the Director-General of the association, Mrs. Bola Odukale.
The NIA acknowledged the issues raised by the House committee, including concerns about financial reporting, unsettled claims, delayed premium remittance, and improper issuance of policies. However, it stated that all actions taken by the member companies, including seeking court orders, were based on legal advice.
“The matters raised by the Committee centre on financial reporting, claims settlement, premium remittance, and issuance of policies,” the NIA said. “All actions taken by the NIA and the affected member companies in response to the Committee’s invitations and pronouncements were based entirely on legal advice by our solicitors.”
The association said it resorted to the courts to challenge what it described as possible legislative overreach, arguing that regulatory oversight should lie with statutory agencies like NAICOM, the Securities and Exchange Commission (SEC), Nigerian Exchange (NGX), Financial Reporting Council (FRC), and others—not the legislature.
It noted, “The Court action seeks to determine whether the current posture of the Committee reflects an exercise of legislative judgment, which, by constitutional design, is the exclusive province of statutory regulators.”
The NIA raised concerns over what it called a potential erosion of the doctrine of separation of powers and warned against the blurring of lines between legislative oversight and regulatory authority.
While reaffirming its readiness to work with the National Assembly, the association urged that such cooperation must be within constitutional limits and must preserve the autonomy of regulatory bodies.
The statement also appreciated the National Assembly for supporting the industry through the recent passage of the Nigerian Insurance Bill, which it said would help reposition the industry to contribute to President Bola Ahmed Tinubu’s “Renewed Hope Agenda” and the government’s $1 trillion economy vision by 2030.
“The Association remains committed to lawful and constructive engagement with all arms of government, provided that such engagement respects the autonomy of statutory regulators and the boundaries established by the Constitution,” it said.
The NIA pledged continued support to its member companies while emphasizing the need to uphold legal compliance and maintain the integrity of the insurance sector.
