The National Insurance Commission (NAICOM) has explained why it dissolved the board and management of African Alliance Insurance Plc in October 2024 and appointed an Interim Management Board (IMB) to oversee the company.
Speaking at the 2025 NAICOM seminar for insurance journalists in Abeokuta, Ogun State, the Commissioner for Insurance and Chief Executive Officer of NAICOM, Mr. Olusegun Ayo Omosehin, said the drastic step was taken following mounting complaints from annuitants over unpaid entitlements.
According to him, the regulator’s intervention was aimed at protecting policyholders and restoring confidence in the firm.
‘The entity used to be solvent, and some people ran it down. Every individual who had been on that board and was responsible for the insolvency will never be appointed again. The owners of the business remain the owners, but we will not allow the public to suffer for the greed of a few individuals,’ Omosehin stated.
The IMB is chaired by Dr. Haruna Mustapha, with Mr. Jacob Erhabor as Managing Director/CEO. Other members include Mr. Wasiu Amao (Executive Director, Technical), Ms. Oremeyi Longe (Executive Director, Finance), Mr. Anthony Achebe (Non-Executive Director), and Ms. Halimatu Khabeeb (Non-Executive Director).
Omosehin disclosed that since taking over, the interim management has settled all outstanding annuitants’ entitlements and is working to dispose of some company assets to generate funds for outstanding obligations.
He added that African Alliance’s annuity portfolio would be transferred to another insurer with the capacity to manage it sustainably.
The Commissioner stressed that NAICOM would not hesitate to revoke the company’s licence if it failed to meet regulatory capital requirements.
‘The Nigerian people will no longer be exposed to the greed of entrepreneurs where policyholders’ money is diverted. That money is not theirs; the bulk of it belongs to policyholders. The government will not close its eyes and allow that to continue,’ he warned.
In his remarks, the Deputy Commissioner for Insurance (Technical), Dr. Usman Jankara, explained that NAICOM had restricted African Alliance from taking on unlimited new business while it remained under intervention.
‘Ordinarily, we shouldn’t allow them to take fresh business when they haven’t settled existing obligations. What we have done is adopt a hybrid model, intervening while setting strict boundaries, so they don’t accumulate more liabilities that they cannot meet,’ he said.
The Commission maintained that its overriding goal is to protect policyholders and preserve the integrity of Nigeria’s insurance industry.