Blessing Omale, Abuja
The Economic and Financial Crimes Commission (EFCC) has said that it will investigate insurance companies in order to address fraudulent practices within Nigeria’s insurance sector.
EFCC Chairman, Mr. Ola Olukoyede, declared this commitment during a visit by officials of the National Insurance Commission (NICOM) at EFCC headquarters in Abuja.
Mr. Olukoyede emphasized the detrimental impact of insurance fraud on Nigeria’s economy, expressing that the EFCC will begin intensified oversight of the sector, similar to its approach with the banking industry.
“The issue of insurance fraud is a major albatross to our economic development. We are ready to take up some of these cases, particularly insolvency attributed to fraudulent management in insurance companies. This is an area where regulatory compliance must be prioritized,” he said.
He criticized insurance firms for their reluctance to settle claims while swiftly collecting premiums.
“They are very fast at collecting premiums, but when it comes to settling claims, they come up with all kinds of excuses. We’re going to lend you our teeth so you can bite,” he asserted.
He underscored the agency’s readiness to collaborate with NICOM to hold fraudsters accountable.
As part of this initiative, the EFCC plans to extend the scope of its Bank Fraud Section to cover the insurance sector, addressing new challenges in Nigeria’s financial system.
NICOM’s Commissioner and CEO, Mr. Olusegun Ayo Omosehin, welcomed the EFCC’s support, emphasizing the need to protect policyholders who suffer when companies collapse due to mismanagement.
“Policyholders who invest their life savings are often left in financial ruin when these institutions fail.
“Our role is to intervene and take appropriate regulatory action, and the EFCC’s involvement will ensure that individuals responsible for mismanagement face justice,” he noted.
Mr. Omosehin further highlighted the frequent use of legal tactics by some companies to evade regulatory scrutiny, stressing that EFCC’s intervention could bolster NICOM’s enforcement efforts.
In a separate development, the EFCC also announced plans to investigate Nigeria’s electricity companies following repeated national grid failures.
During an oversight visit by the House Committee on Financial Crimes, Mr. Olukoyede attributed grid instability to substandard materials used in power operations and indicated that the agency will investigate the issue comprehensively.
With these moves, the EFCC aims to address critical vulnerabilities in Nigeria’s economic sectors, reinforcing its mandate to curb financial crimes and support regulatory bodies.
