Alleged Debt: Court Stops Reps From Summoning 17 Insurance CEOs
The Federal High Court in Abuja has issued an order restraining the Speaker of the House of Representatives, the House Committee on Capital Market and Institutions, and two of its members from compelling the appearance of Chief Executives/Managing Directors of 17 insurance companies at its scheduled hearing session, over debt allegations.
Justice Emeka Nwite granted the interlocutory order, on Monday, Aug 18th following an application filed by the insurers who are members of the Nigerian Insurers Association (NIA).
The application brought by their counsel, Prof. Taiwo Osipitan, sought to stop the House committee from enforcing various letters directing the Chief Executive Officers and Managing Directors of the companies to appear before the lawmakers on July 21, 2025 or any subsequent date pending the determination of the substantive suit.
The suit arose after reports that the House of Representatives commenced an investigation into 25 insurers over alleged non-remittance of multibillion-naira revenue allegedly owed to the Federal Government.
Through their Counsel, the insurers, however, argued that their activities are already regulated by statutory agencies of the Executive arm of government, namely the National Insurance Commission, Corporate Affairs Commission, and Federal Inland Revenue Service—and that the National Assembly lacks constitutional powers to scrutinize their operational documents or alleged indebtedness to the Federal GovernmentThey contended that the July 3rd summons requiring them to submit operational records was aimed at recovering N98.4 billion, allegedly owed to the Federal Government, which falls outside the legislature’s oversight mandate and amounts to an unlawful usurpation of executive powers.
The plaintiffs in the suit are Regency Alliance Plc, Coronation Insurance Plc, Linkage Assurance Plc, Guinea Insurance Plc, Veritas Kapital Assurance Plc, LASACO Plc, Universal Insurance Plc, Sovereign Trust Insurance Plc, Alico Insurance Plc, AXA Mansard Insurance Plc, Cornerstone Insurance Plc, NEM Insurance Plc, Mutual Benefits Assurance Plc, International Energy Insurance Plc, Consolidated Hallmark Insurance Plc, SUNU Assurances Nigeria Plc, and Staco Insurance Plc.
The defendants are the Speaker of the House of Representatives, the Committee on Capital Market and Institutions, a member of the Committee, Hon. Kwamoti Laori, as well as the the Chairman of the Committee, Hon. Bob Solomon.
In his ruling, Justice Nwite observed that none of the defendants filed any process or appeared for defence to the application.
The judge noted that once a party has been given the opportunity to be heard but fails to respond, such a party cannot claim to have been denied fair hearing.
In granting the interlocutory injunction, Justice Nwite restrained the defendants, their agents, or representatives from taking any steps or compelling the Chief Executive Officers and Managing Directors to attend the committee’s meeting/hearing slated for July 21 or for any subsequent date, pending the determination of the substantive suit.
The court subsequently adjourned to September 9, 2025, for hearing of the substantive suit.
