African Alliance Insurance Plc has taken legal action against the National Insurance Commission (NAICOM) at the Federal High Court in Lagos, challenging the regulator’s decision to dissolve its board and remove key executives. Filed under suit number FHC/L/CS/2008/2024, the insurance firm claims that NAICOM’s actions, including the appointment of an interim management team, were unlawful and violated various regulatory provisions. African Alliance argues that NAICOM acted unreasonably and in bad faith, failing to follow guidelines under the National Insurance Act and other regulatory frameworks.
Through its counsel, Tayo Oyetibo (SAN), African Alliance is seeking a court declaration that NAICOM’s intervention was invalid. The firm asserts that NAICOM obstructed its efforts to raise necessary funds by rejecting its application to sell assets in Pension Alliance Limited (PAL), despite needing bridge financing to meet a regulatory mandate. The company alleges that NAICOM’s actions led to severe financial losses and a depletion of its operational funds, which further hindered its financial stability and investor confidence. African Alliance’s lawsuit also contends that NAICOM unfairly sought the Minister of Finance’s approval for a takeover, even as discussions over PAL’s sale were ongoing.
African Alliance accuses NAICOM of undermining its recovery plan by obstructing the PAL sale, required for its Business Turnaround Plan, which included raising N6 billion. According to the plaintiff, NAICOM’s refusal to approve potential buyers and its subsequent appointment of an interim management board indicate a predetermined plan to undervalue the company’s assets. The insurance firm is requesting an injunction to prevent NAICOM’s interim management board from further asset disposition until the court rules on the case. No date has been set for the hearing.
