Reps probe 25 insurance firms over alleged multi-billion naira revenue loss

The House of Representatives has opened an investigation into 25 insurance companies over alleged financial breaches that have reportedly resulted in the loss of hundreds of billions of naira in government revenue.

Chairman of the House Sub-Committee on Capital Market and Institutions, Hon. Kwamoti Laori, announced the inquiry on Monday during a session with representatives of the implicated firms at the National Assembly Complex in Abuja.

Laori said the probe was triggered by petitions alleging that the companies violated statutory provisions in their operations, depriving the federal government of substantial revenue.

“This committee is tasked with addressing petitions regarding violations by these insurance companies in relation to their operations and failure to comply with certain statutory requirements,” he said.

“These breaches have led to the federal government losing hundreds of billions of naira. That is why the companies were summoned, to either validate or contest the liabilities attributed to them.”

According to the lawmaker, each of the 25 firms was formally informed of its outstanding obligations and called upon to account for its financial practices.

“The goal of this engagement is to ensure that all revenue due to the federal government from these private entities is fully remitted,” Laori added.

He stressed that it falls within the National Assembly’s constitutional role to monitor government revenue and seal leakages, particularly in sectors involving public-private collaboration.

The committee also criticised efforts by some of the companies to delay the inquiry by resorting to litigation.

“Some of the firms have taken the matter to court and served the House with legal documents. It is now up to us and the House leadership to review those documents,” Laori said.

“If the litigation does not affect the core of our mandate, we will continue. If it does, we’ll wait for the court’s ruling.”

He described the legal action as an apparent tactic to obstruct legislative oversight.

“Going to court seems like a deliberate attempt to impede the National Assembly’s work,” he remarked.

Laori further expressed dissatisfaction with the absence of some company executives, noting that they had sent representatives unable to address key allegations.

“We have made it clear that Chief Operating Officers must appear in person. One COO sent someone who could not respond to any of the allegations—this is unacceptable,” he said. “It is the same individuals who will later accuse the National Assembly of not fulfilling its duties.”

The committee chairman also faulted the industry regulator, the National Insurance Commission (NAICOM), accusing it of neglecting its oversight responsibilities.

“NAICOM has a supervisory mandate, and if they were carrying out their duties effectively, we would not need to conduct this probe. They must step up,” Laori stated.

Meanwhile, 17 of the companies currently pursuing legal action sent a legal representative, Mr Abimbola Kayode, to Monday’s hearing.