Insurance companies under the auspices of the Nigerian Insurers Association (NIA) are challenging the legality of the oversight of the National Assembly (NASS), specifically the House of Reps Committee on Capital Market and Institutions, of insurance business operations in the country.
This development is sequel to ongoing investigations into certain member companies over alleged financial infractions.
The matters raised by the Committee centred on financial reporting, claims settlement, premium remittance, and issuance of policies.
Reacting to this development, the director general/CEO, NIA, Bola Odukale said, “the association wishes to state unequivocally that 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 its Solicitors. It was on the firm instruction of legal counsel that recourse was made to the courts.”
She stressed that 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 law.
She added, “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, 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 she emphasised, raised serious questions about legislative overreach and an erosion of the doctrine of separation of powers, a cornerstone of Nigeria’s constitutional democracy.
“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.
“The NIA will continue to provide its full support to all member companies while upholding the principles of legal compliance and sector-wide integrity,” the association noted.
