The National Insurance Commission (NAICOM) has dissolved the Board and Management of African Alliance Insurance Plc, one of Nigeria’s oldest life insurance firms.
The regulatory action, effected October 30, 2024, follows years of insolvency concerns and the company’s repeated failure to meet obligations to annuitants and policyholders.
During a recent press conference held in Lagos, Commissioner for Insurance, Mr. Segun Omosehin, explained that NAICOM had been closely monitoring African Alliance Insurance’s financial and operational health. An extensive review revealed severe issues that undermine the company’s ability to operate safely and fulfill commitments to clients. He emphasised that recent uncertainties surrounding claims settlement and annuitant payments necessitated the commission’s intervention, stating: “This decision follows an extensive monitoring and review of the company’s financial condition, governance, and operational practices, which revealed significant concerns regarding its ability to continue operating in a safe and sound manner.”
To steer the company back on course, NAICOM appointed an Interim Management Board with a mandate to restore stability and enforce compliance. Dr. Haruna Mustapha will lead the board as Chairman, with Mr. Jacob Erhabor serving as Managing Director (MD) and Chief Executive Officer (CEO). The board will include Mr. Wasiu Amao, Executive Director, Technical; Ms. Oremeyi Longe, Executive Director, Finance; Non-Executive Directors, Mr. Anthony Achebe and Haj. Halimatu M. Khabeeb.
This new team will oversee day-to-day operations, implement reforms, and ensure that African Alliance Insurance complies with regulatory standards. NAICOM has committed to collaborating with key stakeholders, including annuitants, policyholders, employees, and investors, to minimize disruption during this transitional period.
Mr. Omosehin stressed that NAICOM’s intervention aims to safeguard the interests of African Alliance’s annuitants, policyholders, and other stakeholders, with a clear objective to secure the company’s future.
“The objective of this takeover is to protect the interests of African Alliance Insurance Plc’s annuitants, policyholders, other stakeholders, and the broader insurance industry,” he stated, affirming the commission’s commitment to upholding the stability and integrity of Nigeria’s insurance sector.
This regulatory action highlights NAICOM’s dedication to addressing pressing issues within the industry, ensuring accountability, and upholding public trust in Nigeria’s insurance landscape.
