In a bold move to uphold financial transparency and regulatory compliance in Nigeria’s insurance sector, the House of Representatives has opened a full-scale investigation into 25 insurance firms over alleged financial infractions.
The probe, spearheaded by the House Committee on Insurance and Actuarial Matters, follows reports of irregularities ranging from non-remittance of policyholders’ funds to failure to meet statutory obligations and discrepancies in financial reporting.
Chairman of the Committee, Hon. Ahmed Jaha, disclosed that the investigation aims to determine the extent of financial mismanagement, if any, and to ensure that regulatory laws under the National Insurance Commission (NAICOM) are strictly enforced.
“We are committed to sanitising the industry and restoring trust in Nigeria’s financial institutions. If there are breaches, there must be consequences,” Hon. Jaha stated.
The investigation will cover the last five years of operations for the implicated firms, focusing on solvency, claims settlement practices, reinsurance obligations, and compliance with tax and pension regulations. Preliminary findings suggest billions of naira may have been mishandled or unaccounted for, with grave implications for both policyholders and the broader economy.
The move has sparked wide interest across the financial and business communities, with many stakeholders calling for greater oversight of the insurance sector. The Nigeria Insurers Association (NIA) has pledged its cooperation with the investigation, urging its members to provide all necessary documentation.
Civil society groups and financial watchdogs have lauded the decision, saying it is long overdue and essential to protect consumers and strengthen investor confidence in the Nigerian market.
The House Committee is expected to summon top executives of the concerned firms in the coming weeks as part of the inquiry, while also working closely with the Economic and Financial Crimes Commission (EFCC), the Federal Inland Revenue Service (FIRS), and NAICOM.