EFCC Intensifies Scrutiny on Insurance Fraud in Nigeria
EFCC chairman, Ola Olukoyede
The Economic and Financial Crimes Commission (EFCC) has announced a heightened focus on Nigeria’s insurance industry, as part of an intensified campaign to curb fraud impacting the sector. EFCC Chairman, Ola Olukoyede, pledged to investigate allegations of mismanagement and insolvency in insurance firms, which he stated are hampering Nigeria’s economic growth.
In a recent meeting at the EFCC headquarters, Olukoyede assured Olusegun Omosehin, Commissioner of Insurance and CEO of the National Insurance Commission, of the Commission’s commitment to enforcing regulatory compliance and deterring fraudulent activities within the insurance sector.
Olukoyede highlighted the EFCC’s determination to apply similar levels of scrutiny to insurance companies as are exercised on banks, including expanding the Commission’s Bank Fraud Section to incorporate insurance-related issues. “The issue of insurance fraud is a major albatross to our economic development,” he noted. “We are ready to take up cases of insolvency attributed to fraudulent management and regulatory non-compliance in insurance firms.”
He emphasized a need for greater accountability, stating, “They are quick to collect premiums, but slow in settling claims, often giving various excuses. We will collaborate closely with the insurance regulator to ensure that industry players understand it’s no longer business as usual. We are ready to lend our support so that together we can set new standards.”
Omosehin highlights the impact of corporate governance violations, particularly when policyholders lose savings due to mismanagement. “The beginning of institutional failure often arises from governance lapses,” he explained, adding that the Commission will work with the EFCC to hold accountable those responsible for defrauding policyholders.
This partnership signals a new era of enforcement within the insurance industry, aiming to strengthen consumer protections and rebuild confidence in the sector. Golden Tulip Hotel Seeks Band B Power Reclassification
