African Alliance Insurance Plc has filed a lawsuit against the National Insurance Commission (NAICOM) at the Federal High Court in Lagos, seeking to nullify the dissolution of its board and removal of its Chief Executive Officer (CEO) and executive directors. The company claims the decision, executed on October 29, 2024, was unlawful, unreasonable, and done in bad faith.
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In the suit numbered FHC/L/CS/2008/2024, African Alliance is challenging the legality of the interim management board appointed by NAICOM, which includes Dr. Haruna Mustafa, Jacob Erhabor, Wasiu Amao, Oremeyi Longe, Anthony Achebe, and Halimatu Khabee. The Director of Legal, Enforcement & Market Development at NAICOM, Dr. Talmiz Usman, and the Minister of Finance are also named as defendants.
The plaintiff, represented by Senior Advocate of Nigeria (SAN) Tayo Oyetibo, contends that NAICOM’s actions did not comply with the National Insurance Corporation Act, the Insurance Act, and the Prudential Guidelines for Insurers and Reinsurers in Nigeria. African Alliance alleges that the commission acted unreasonably and in bad faith, particularly regarding its interference while the company’s request to sell its 49% stake in Pension Alliance Limited (PAL) was pending.
According to African Alliance, the sale of its stake in PAL was a crucial part of its Business Turnaround Plan (BTP) aimed at securing N6 billion in bridge financing. The company claims NAICOM hindered its efforts to raise funds, leading to severe financial losses, a run on the company, and a loss of customers and investor confidence.
In addition to seeking a nullification of the board dissolution, African Alliance is requesting an injunction to restrain the interim board from disposing of its assets. The company argues that NAICOM’s actions have caused significant financial distress and have undermined its turnaround efforts.
No date has been set for the hearing of the case.
