The Federal High Court in Abuja on Wednesday declined a request by the Nigerian Insurers Association (NIA) and 17 insurance companies to temporarily block the House of Representatives’ Committee on Capital Market and Institutions from investigating alleged N98.4 billion liabilities owed by non-government-funded insurers to the Federal Government. Justice Emeka Nwite refused the ex parte application moved by the plaintiffs’ counsel, A.M. Kayode, opting instead to put the respondents, including the House Speaker and committee members, on notice.
Legal Arguments and Court Proceedings
The NIA, represented by Prof. Taiwo Osipitan (SAN), argued that the committee lacks the authority to summon insurance firms’ CEOs or demand operational documents, as these companies are regulated by the National Insurance Commission, Corporate Affairs Commission, and Federal Inland Revenue Service, not the legislature. An affidavit by NIA manager Akioya Toyin Victoria claimed the probe aims to recover N98.4 billion in alleged liabilities, risking business disruption if unchecked. Kayode noted that despite notifying the committee of the lawsuit filed on July 18, it proceeded with a July 24 session, prompting concerns about preserving the case’s subject matter.
Justice Nwite, prioritizing fairness, rejected the ex parte motion and scheduled a hearing for August 13 to address the motion on notice, ensuring all parties are heard.
Background and Implications
The dispute stems from the committee’s probe, launched on July 21, into 25 insurers for alleged non-remittance of government revenues. The NIA had previously criticized the investigation as “legislative overreach,” seeking judicial clarity on the committee’s powers. The court’s decision allows the probe to continue, potentially exposing financial infractions while testing the balance between legislative oversight and regulatory independence in Nigeria’s insurance sector.
