The House of Representatives has launched a sweeping investigation into 25 insurance firms over allegations of financial infractions and deliberate violations of statutory obligations, which lawmakers believe may have resulted in the loss of hundreds of billions of naira in government revenue.
Chairman of the House Committee on Insurance and Actuarial Matters, Hon. Kwamoti Laori, disclosed this during a recent session at the National Assembly in Abuja. According to him, the probe stems from multiple petitions received by the committee, detailing large-scale infractions and possible revenue sabotage involving the insurance companies.
“The petitions we received point to clear breaches of financial regulations, non-remittance of compulsory third-party motor insurance revenues, and non-payment of statutory levies due to the government,” Hon. Laori stated. “Some of these companies have gone as far as approaching the courts in an attempt to stop this investigation — a move we consider not only suspicious but a clear indication that there’s something they’re trying to hide.”
Laori also criticized the National Insurance Commission (NAICOM) for its failure to exercise adequate oversight on the insurance sector, accusing the regulator of turning a blind eye to financial recklessness and under-reporting of earnings by licensed operators.
He emphasized that the committee’s investigation is not a witch-hunt but a patriotic effort to recover lost government revenues and restore accountability in the insurance industry.
“It is unfortunate that NAICOM has not lived up to its regulatory mandate. The rot we’re seeing in this industry is a direct consequence of weak supervision,” Laori said. “We are committed to unearthing the truth and making sure the Nigerian government is not continually shortchanged by powerful players hiding behind corporate veils.”
The probe will examine financial records, regulatory filings, and revenue remittances from the insurance firms over the past several years. The committee is also expected to summon key executives from the indicted firms and engage forensic auditors to trace revenue gaps.
The investigation marks one of the most aggressive oversight exercises by the 10th Assembly and could have far-reaching implications for the country’s insurance industry, which has long operated with limited transparency and minimal public scrutiny.
Analysts say the outcome of the probe may lead to sweeping reforms and possibly sanctions on culpable firms, especially if evidence of systemic fraud, under-declaration of profits, or illegal retention of public funds is established.