The Nigerian Insurers Association (NIA) has faulted the House of Representatives Committee on Capital Market and Institutions’ ongoing investigations into certain member companies (Insurers) over alleged multi-billion financial infractions, alleging it raises questions about “legislative overreach” by the lawmakers.
This was disclosed in a statement signed by the Director-General / CEO of NIA, Bola Odukale, titled “RE: Investigation by the House Committee on Capital Market and Institutions,” and shared with Nairametrics.
The NIA stressed that it represents licensed insurance and reinsurance companies in Nigeria and has taken due notice of the recent press statement issued by the Committee on Capital Market and Institutions concerning ongoing investigations into certain member companies over alleged financial infractions.
The development follows reports that the House, on Monday, began probing 25 insurers over alleged non-remittance of multi-billion-naira revenues owed to the Federal Government of Nigeria.
NIA Reacts
Reacting to the development, Odukale maintained that while the matters raised by the Committee concern financial reporting, claims settlement, premium remittance, and policy issuance, all actions (including court action) taken by NIA and the affected member companies in response to the Committee’s invitations and pronouncements were based entirely on legal advice from its solicitors.
“It was on the firm instruction of legal counsel that recourse was made to the courts.
“The objective of approaching the Court is to seek judicial guidance on the legality, propriety, and constitutional limits of the Committee’s intervention in order to safeguard institutional integrity, uphold regulatory independence, and ensure that legislative oversight remains within the bounds of the law,” the statement partly reads.
The Association stressed that its court action seeks to determine whether the current posture of the Committee reflects an exercise of legislative judgment, which, according to the NIA, by constitutional design, is the exclusive province of statutory regulators such as the National Insurance Commission (NAICOM), Securities and Exchange Commission (SEC), Nigerian Exchange (NGX), Financial Reporting Council (FRC), Nigeria Data Protection Commission (NDPC), and the National Information Technology Development Agency (NITDA).
“This raises serious questions about legislative overreach and an erosion of the doctrine of separation of powers, a cornerstone of Nigeria’s constitutional democracy,” the statement partly reads.
- The Association said it 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.
The NIA highlighted that it will continue to provide its full support to all member companies while upholding the principles of legal compliance and sector-wide integrity.
