NIA Defends Legal Action, Warns Against Legislative Overreach

By LOVETH AZODO,  Lagos

The Nigerian Insurers Association (NIA) has issued a firm response to the House of Representatives Committee on Capital Market and Institutions, following recent investigations into certain member companies over alleged financial irregularities.

In a press statement signed by its Director-General, Mrs. Bola Odukale, the Association emphasized that all steps taken by the association and affected companies were based on legal advice, particularly in seeking judicial intervention to clarify the scope of the Committee’s oversight powers.

The House Committee’s inquiry reportedly centers on issues of financial reporting, claims settlement, premium remittance, and the issuance of policies by licensed insurance and reinsurance firms.

“The recourse to the courts was on the firm instruction of our legal counsel. The aim is to obtain judicial guidance on the legality and propriety of the Committee’s intervention, and to safeguard institutional integrity,” the statement read.

It raised concerns about possible legislative overreach, warning that continued encroachment into the jurisdiction of statutory regulatory bodies could undermine the principle of separation of powers, a foundational element of Nigeria’s constitutional democracy.

According to the , regulatory matters involving the insurance sector fall within the purview of agencies 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).

While reaffirming its commitment to cooperating with all arms of government, the NIA stressed the need for such engagement to respect the autonomy of these regulatory bodies.

“We remain committed to lawful and constructive dialogue, but only within the framework of constitutional and regulatory boundaries,” the statement concluded.