Alleged financial infractions: NIA seeks legal clarity on Reps committee’s investigative power

Nigerian Insurers Association (NIA), in its reaction to the recent press statement issued by the House of Representatives Committee on Capital Market and Institutions concerning ongoing investigations into certain member companies over alleged financial infractions, said it has approached the court to clarify the legal powers of the House Committee on Capital Market and Institutions.

It be recalled that the House on Monday began probing 25 insurers over alleged non-remittance of multi-billion-naira revenues owed to the Federal Government.

NIA, representing licensed insurance and reinsurance companies in Nigeria, said the Committee’s inquiry concerns financial reporting, claims payment, premium remittance, and issuance of policies by certain member companies, while noting that NIA and the affected insurers acted strictly on legal advice by their counsel in deciding to seek judicial intervention.

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In a statement signed by the Director-General / CEO of NIA, Mrs Bola Odukale, NIA said actions taken by the NIA and its members regarding the Committee’s invitations were based entirely on legal advice received from the Association’s Solicitors, saying it was on firm instruction from legal counsel that the association resolved to approach the courts.

She said the aim is to obtain judicial guidance on the legality and constitutional boundaries of the Committee’s intervention in such matters.

“The objective of approaching the Court is to seek judicial guidance on the legality, propriety, and constitutional limits of the Committee’s intervention to safeguard institutional integrity, uphold regulatory independence, and ensure that legislative oversight remains within the bounds of law.

“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 raises serious questions about legislative overreach and an erosion of the doctrine of separation of powers, a cornerstone of Nigeria’s constitutional democracy,” she said.

Odukale warned that this raises concerns about legislative overreach and potential violations of Nigeria’s constitutional separation of powers.

She, however, noted that the Association remained 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,” she said.