Court Halts Reps Probe of NIA, 17 Insurers Over Alleged N98.4bn Liabilities

Abuja, Nigeria — The Federal High Court in Abuja on Monday temporarily restrained the House of Representatives Committee on Capital Market and Institutions from summoning the Nigerian Insurers Association (NIA) and 17 insurance companies over an ongoing probe into alleged N98.4 billion liabilities against non-government-funded insurers.

Justice Emeka Nwite issued the restraining order, warning that the insurers’ Chief Executive Officers (CEOs) “stand the risk of being arrested” if they appear before the committee while the substantive case is pending.

The ruling followed a motion on notice filed and argued by the insurers’ lead counsel, Professor Taiwo Osipitan, SAN.

Legal Dispute

The NIA, representing the 17 insurance companies, approached the court to stop the House Committee from summoning their executives.

Osipitan, in his submission, argued that the companies are private entities under the regulatory purview of the National Insurance Commission (NAICOM), the Corporate Affairs Commission (CAC), and the Federal Inland Revenue Service (FIRS)—all agencies within the executive arm of government.

He contended that the House Committee had no constitutional powers to summon non-government-funded companies or demand their financial records with a view to recovering liabilities.

According to court filings, the committee’s letter of July 3, 2025, directed the insurers to submit operational documents and appear before lawmakers to defend alleged indebtedness to the Federal Government.

In an affidavit deposed by Akioya Toyin Victoria, a manager at NIA, it was alleged that the lawmakers’ primary objective was to recover N98.4 billion said to be liabilities of the insurers to government coffers.

Court’s Ruling

Justice Nwite observed that none of the respondents—including the Speaker of the House of Representatives, the Committee on Capital Market and Institutions, and its members Hon. Kwamoti B. Laori and Hon. Bob Solomon—filed any response to the motion on notice.

He held that:

• A party who fails to respond to a duly served court process cannot later complain of a breach of fair hearing.
• The NIA and its members have a right to protect themselves against what they described as “unconstitutional invitations/summons” by lawmakers.
• There are serious triable issues regarding whether legislators have constitutional authority to summon private insurers’ CEOs and demand financial records.

“The 2nd-18th Plaintiffs/Applicants (Insurance Companies) and their Chief Executive Officers/Managing Directors stand the risk of being sanctioned or arrested by the Defendants, which will negatively affect their businesses,” Nwite ruled.

On the other hand, he added, the lawmakers have nothing to lose if restrained pending a final determination of the matter.

Consequently, the judge barred the committee from compelling the insurers’ appearances or enforcing the summons until the case is resolved. He adjourned the substantive hearing to September 9, 2025.

Backstory

The injunction follows weeks of tension between lawmakers and insurers.

Earlier this year, the House of Representatives Committee on Capital Market and Institutions launched a probe into 25 insurers over alleged non-remittance of billions of naira to the federal government. The NIA pushed back, accusing the committee of “legislative overreach” and arguing that insurance firms are already strictly regulated by NAICOM and other executive agencies.

The association stressed that while it supports accountability and transparency, legislative interference could destabilize the sector and undermine confidence in Nigeria’s insurance industry.