The National Insurance Commission (NAICOM) has barred the sacked directors of African Alliance Insurance Company (AAI) from returning to the firm’s board or serving on any other board in Nigeria’s insurance industry.
The Commissioner for Insurance, Olusegun Omosehin, disclosed this during a question-and-answer session at NAICOM’s annual seminar for insurance journalists in Abeokuta, Ogun State.
In October 2024, NAICOM dissolved the board and management of AAI following concerns over insolvency and mismanagement that left policyholders’ claims unpaid. An interim management board (IMB) was appointed to stabilize operations, safeguard policyholders’ funds, and restore confidence in the company.
Omosehin stressed that accountability remains central to NAICOM’s decision. “The entity used to be solvent, and some people ran it down. Everyone who was on the board and contributed to the insolvency will never return, not to this board or any other in the industry,” he said. While the company’s ownership remains unchanged, he emphasized that those who mismanaged it cannot play a role in its future.
The Commissioner also outlined steps being taken to restructure the company. He explained that NAICOM is overseeing the disposal of some of AAI’s assets to unlock funds that will be used to settle liabilities. Once sufficient resources are recovered, annuity portfolios will be transferred to another insurer with the expertise and capacity to manage them. “They can no longer handle an annuity portfolio. We will transfer that responsibility and use proceeds from asset disposal to settle claims. The company will eventually be handed back to its owners, but only if they meet the required minimum capital. If not, the licence will be revoked,” he warned.
Omosehin condemned practices where policyholders’ money was diverted for personal enrichment by board members, leaving the public to suffer. “The actual capital injected is small; the bulk of funds belong to policyholders. The government will not look away while such exploitation continues,” he declared.
Backing the Commissioner, NAICOM’s Deputy Commissioner (Technical), Dr. Usman Jankara, explained why the regulator is restricting AAI from taking on new business. According to him, a company that has failed to settle existing liabilities should not be allowed to accumulate new ones. Nonetheless, NAICOM adopted a hybrid model that allows limited business activity under strict control, to protect public interest while preventing further exposure.
The IMB, chaired by Dr. Haruna Mustapha with Mr. Jacob Erhabor as Managing Director/CEO, has already paid outstanding dues to annuitants. Other members include Mr. Wasiu Amao as Executive Director (Technical), Ms. Oremeyi Longe as Executive Director (Finance), Mr. Anthony Achebe as Non-Executive Director, and Ms. Halimatu Khabeeb as Non-Executive Director.
With these reforms, NAICOM seeks to restore African Alliance’s financial health and protect policyholders, while making clear that directors who mismanaged insurers in the past will no longer be entrusted with the industry’s future.
