In a major regulatory intervention, the National Insurance Commission (NAICOM) has dismissed the Board and Management of African Alliance Insurance Plc, one of Nigeria’s longest-standing life insurance companies. This decision, effective as of October 30, 2024, was announced by Segun Omosehin, the Commissioner for Insurance and CEO of NAICOM, and comes after years of the company struggling with insolvency and failing to meet financial commitments to policyholders.
According to NAICOM, the takeover follows a thorough examination of African Alliance’s financial status, governance practices, and operational performance. These evaluations highlighted significant concerns regarding the company’s ability to continue operating in a financially sound manner, with particular issues surrounding delays in claims settlements and payments to annuitants. NAICOM’s decision aims to protect policyholders, employees, and other stakeholders from further disruption.
To manage African Alliance Insurance during this transitional period, NAICOM has appointed an Interim Management Board. The team includes Haruna Mustapha as Chairman, with Jacob Erhabor stepping in as Managing Director/CEO. Other key members include Wasiu Amao as Executive Director of Technical, Oremeyi Longe as Executive Director of Finance, and Anthony Achebe and Halimatu M. Khabeeb serving as non-executive directors. This board will be responsible for overseeing the company’s day-to-day operations, ensuring compliance with NAICOM’s regulatory standards, and implementing necessary reforms to stabilize the company.
The regulatory body emphasized its commitment to working closely with all stakeholders—policyholders, employees, investors, and annuitants—to ensure a smooth transition and continuity of service. NAICOM’s primary goal with this action is to restore stability within African Alliance, safeguard the interests of its policyholders, and uphold the integrity of Nigeria’s insurance sector.
Segun Omosehin highlighted NAICOM’s dedication to the stability of the broader insurance industry. “Our actions today demonstrate our commitment to addressing concerns within the sector and ensuring public interest is protected,” he stated.
This decisive action by NAICOM shows the importance of sound financial management and adherence to regulatory standards in the insurance industry, setting a strong example for other institutions.
