The development was disclosed by Kwamoti Laori, Chairman of the House Sub-Committee on Capital Market and Institutions, during a session with representatives of the firms at the National Assembly complex on Monday. Laori, who represents the Demsa/Numan/Lamurde Federal Constituency of Adamawa State, said the investigation stems from a petition detailing widespread infractions across the insurance sector.
"This committee is saddled with the responsibility of treating a petition based on infractions from these insurance companies in respect of their operations and non-compliance with certain statutory provisions," he said. "Those infractions have resulted in the Federal Government losing hundreds of billions in revenue. That is why they are invited."
Each company was formally served and asked to either affirm or refute the claims outlined in the petition. The inquiry aims to ensure that private sector operators adhere to regulatory obligations and that public funds are duly accounted for.
However, in a move that appears to challenge the oversight function of the legislature, 17 of the companies filed lawsuits in a bid to halt the proceedings. Their legal representative, Abimbola Kayode, appeared before the committee on their behalf.
Laori criticized the legal maneuver, suggesting it was a tactic to derail the investigation. "Some of the companies ran to court and have served the House with court process. It’s for us and the House to sit down and look at the process. But clearly, it’s an attempt to throw a spanner in the works of the National Assembly."
The chairman said the panel would insist on hearing directly from the Chief Operating Officers of the implicated firms. “We are not going to be dealing with proxies. These are serious allegations and we expect those responsible to come forward,” he emphasized.
Laori also took aim at the National Insurance Commission (NAICOM), the regulatory authority overseeing the sector. He suggested that weak enforcement had enabled these infractions to go unchecked.
“NICON has a supervisory role in respect of that and I’m not holding brief for them. But, I think if they were doing their job, we would not be here today,” he said.
As the committee continues its probe, industry observers are watching closely. The inquiry could mark a turning point for regulatory compliance and transparency in Nigeria’s insurance sector or expose deeper structural flaws within the system itself.
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