The quick dash to challenge the National Insurance Commission powers specifically granted by NIIRA 2025 to cancel the licences of insurance entities that failed the recently concluded recapitalisation has put policyholders on the stands as they await the tail out of the litigation process which duration they do not an inkling.
NAICOM had anticipated that litigation stream would be like water try to flow on patched dry land which would quickly dry up, but this set gather as much volume to hear what the judges would say on an Act that grants powers to NAICOM to do what was done.
Commissioner for Insurance, Mr. Olusegun Omosehin, said even though he personally earnestly prayed to avoid liquidation which goes pari passu with litigation, NAICOM welcomes it as right of the business owners, “but it will not change anything.” Inquisitive Omosehin said the Commission would want to know what they want to contest.
Content that the case is in the court, he said it does not stop the regulator that has taken over the entities. “What the litigation would only do unfortunately, is it will delay the process of settlement of the policyholders because those cases that have been instituted need to be finalised before before the liquidator can start making appropriate payments.”
“Otherwise we set a time for this process. We wanted a timeline of six months and maximum to resolve the process of the general business. For life business the portfolio must be transferred within six months to another entity. The case of Universal Insurance is that of general business. But one word I will give is, no policyholder will be allowed to suffer in this process.”
He cleared that the recently constituted protection fund though in its infancy is still a distant call to the rescue. He said it would be unlikely for the fund to be activated for the process. He said there are an array of assets to be realised to settle policyholders. “Apart from the asset of these entities, they also have statutory deposit with the CBN. These are funds available for settlement of liabilities. In the process of settlement policyholders comes first before other creditors.
“Its after they have been taken care of you then follow the order of settlement of other creditors before it gets to the owners of the business. They are the last in this exercise. That process will be transparent and you can follow as we move on,” he stated.
Featured Picture:L-R Usman Jankara Jimada, Deputy Commissioner for Insurance, Technical, NAICOM, Olusegun Omosehin CFI/CEO and Ekerete Ola Gam-Ikon, Deputy CFI at the media session in Lagos on 11/9/2026.
