The Economic and Financial Crimes Commission Chairman, Ola Olukoyede, has pledged that the agency will increase its scrutiny of Nigeria’s insurance industry to curb fraud and enhance economic stability.
Olukoyede highlighted the damaging effect of insurance fraud on Nigeria’s economic development, vowing to investigate the alleged mismanagement within the industry. He emphasized that the insurance sector would now receive similar attention as the banking sector, which is already closely monitored by the EFCC.
A statement by EFCC spokesperson Dele Oyewale revealed that Olukoyede made this commitment when the National Insurance Commission delegation, led by Commissioner for Insurance and CEO Olusegun Omosehin, visited the EFCC’s headquarters. During the meeting, Olukoyede noted that the agency’s Bank Fraud Section would expand its mandate to address insurance-related issues.
“The issue of insurance fraud is a major albatross to our economic development,” Olukoyede stated. “We are ready to take up some of these cases, particularly insolvency attributed to the fraudulent management of insurance companies. This is something we must not tolerate, and that’s why regulatory compliance must be prioritized in industries where systems work.”
Olukoyede urged NAICOM to support the EFCC with information needed to combat fraud, adding, “We are ready to work with you, and by doing so, we’ll send signals to industry players that it’s no longer business as usual. Starting today, we will be looking at insurance companies just as we scrutinize the banking industry to foster growth.”
He criticized the reluctance of some insurance companies to settle claims promptly. “They are very fast at collecting premiums but when it comes to settling claims, they start coming up with all kinds of excuses,” he said. “In places like the US and Europe, the scale of insurance activities is often larger than that of banks. We will collaborate with you and give you our support to hold companies accountable.”
Olusegun Omosehin, NAICOM’s chief, expressed concern over the impact of corporate governance failures in insurance companies, which often lead to severe consequences for policyholders.
“When insurance institutions fail, we are expected to intervene and take appropriate regulatory actions,” Omosehin noted. “These failures often stem from governance violations, including cases where some individuals mismanage the institution’s assets, leaving policyholders, who have invested their life savings, at a loss.”
He explained that such cases of institutional failure need to be reported to appropriate agencies like the EFCC to ensure accountability. “This is one of the urgent issues we’ve brought to the EFCC’s attention,” Omosehin said, underscoring the importance of collaboration to protect policyholders and maintain stability in the sector.
