Court Stops Reps From Summoning Insurance CEOS Over Alleged N98.4bn Debt

The Federal High Court in Abuja has halted moves by the House of Representatives to compel Chief Executives and Managing Directors of 17 insurance companies to appear before its Committee on Capital Market and Institutions over alleged debt claims.

Justice Emeka Nwite, in a ruling on Monday, August 18, granted an interlocutory injunction by restraining the Speaker of the House, the Committee, and two of its members from enforcing the appearance of the company executives. The order followed an application filed by the affected insurers, all of whom are members of the Nigerian Insurers Association (NIA).

The insurers, through their counsel, Prof. Taiwo Osipitan, asked the court to stop the lawmakers from compelling their attendance at a session earlier fixed for July 21, 2025, or any other date, pending the determination of a substantive suit challenging the probe.

The dispute stemmed from an investigation reportedly launched by the House into 25 insurance firms over alleged non-remittance of multibillion-naira revenue to the Federal Government. The committee had issued letters and a July 3 summons directing the insurers to submit operational records, with lawmakers claiming the firms owed N98.4 billion.

However, the insurers argued that their activities are already subject to regulation by statutory executive agencies, including the National Insurance Commission, the Corporate Affairs Commission, and the Federal Inland Revenue Service. They maintained that the National Assembly has no constitutional powers to demand their operational documents or to recover alleged debts on behalf of the government.

According to the plaintiffs, the lawmakers’ actions amounted to an “unlawful usurpation of executive powers.”

The 17 companies involved in the suit include 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 in the matter are the Speaker of the House of Representatives, the Committee on Capital Market and Institutions, Hon. Kwamoti Laori (a committee member), and its Chairman, Hon. Bob Solomon.

In his ruling, Justice Nwite noted that none of the defendants filed any response or appeared to defend against the application. He held 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.”

Consequently, the judge granted the interlocutory injunction restraining the lawmakers, their agents, or representatives from compelling the insurers’ CEOs and MDs to attend the July 21 session or any future hearing until the substantive case is resolved.

The matter has been adjourned to September 9, 2025, for further hearing.