Reps Deputy Spokesman Philip Agbese Accuses NAICOM of Misinterpreting Insurance Law, Warns Action Could Cripple NAIC, Cost Jobs

‎Deputy Spokesman of the House of Representatives, Philip Agbese, has accused the National Insurance Commission (NAICOM) of misinterpreting and selectively implementing insurance laws, warning that its actions could weaken the Nigerian Agricultural Insurance Corporation (NAIC), cost jobs and discourage investment in agriculture.
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‎Agbese, who is also a member of the House Committee on Insurance and Actuarial Matters, said the matter went beyond a disagreement between a regulator and an institution, arguing that NAIC plays an important role in protecting agricultural investments and providing confidence to farmers, businesses and investors.
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‎Speaking with journalists in Abuja on Thursday, the Labour Party lawmaker said the regulatory process surrounding NAIC required urgent scrutiny, particularly amid concerns over NAICOM’s implementation of the insurance sector recapitalisation programme.
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‎“The issue before us is bigger than a regulatory disagreement. NAIC is a strategic institution with a direct responsibility to protect agricultural investments and provide confidence to farmers, businesses and investors. Any regulatory action that weakens NAIC or creates uncertainty around its continued operation deserves the immediate attention of the National Assembly. We cannot allow an institution with such an important role in our economy to be placed in jeopardy through what appears to be a misinterpretation or selective implementation of the law,” he said.
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‎NAICOM announced in August that 43 insurance and reinsurance companies had met the new minimum capital requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, while eight others were undergoing further regulatory verification.
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‎The Benue lawmaker said the objective of strengthening the insurance industry should not be allowed to undermine institutions whose work is critical to economic activity.
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‎“Misinterpretation and selective implementation of the law is throwing the insurance sector into serious commotion. The purpose of regulation is to strengthen institutions and protect the public interest, not to create confusion that threatens businesses, workers and investors. If the law is being applied in a way that puts NAIC at risk, then we have a responsibility as lawmakers to ask questions and ensure that the regulatory process remains within the law,” Agbese declared.
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‎He said any weakening of NAIC could have wider consequences for Nigeria’s agricultural sector, particularly as the federal government seeks to attract more private capital into farming and related businesses.
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‎“We are asking investors to put their money into Nigerian agriculture because we want to increase production, create jobs and reduce the risks confronting farmers and businesses. NAIC is part of the institutional framework that gives investors confidence that those risks can be managed. We cannot, on the one hand, tell investors to bring their capital into agriculture and, on the other hand, take regulatory actions that weaken an institution designed to protect those investments. That contradiction is dangerous for the economy,” Agbese said.
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‎The lawmaker also warned that the implications of the dispute could extend to workers whose livelihoods depend on NAIC and other institutions within the insurance sector.
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‎“When an institution like NAIC is weakened, the consequences are not confined to its balance sheet or its management. There are workers whose livelihoods depend on that institution, farmers who depend on insurance protection and investors who require certainty before committing their money. Regulatory decisions must therefore be measured against their real economic consequences. We cannot pursue reforms that end up costing Nigerians their jobs or discouraging the very investment we are trying to attract,” he said.
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‎Agbese also raised concerns over reports of the Economic and Financial Crimes Commission’s interest in allegations linked to the recapitalisation exercise. Reports in August said the EFCC invited Commissioner for Insurance Olusegun Omosehin over allegations concerning fees imposed during the exercise, following complaints by NICON Insurance and Nigeria Reinsurance Corporation.
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‎He said the controversy was unhealthy for an industry that depends on confidence and stability.
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‎“The reports surrounding the EFCC’s interest in allegations linked to the recapitalisation exercise are also a matter of concern. An insurance regulator must command confidence and demonstrate stability, transparency and predictability. When the regulator itself becomes the subject of prolonged controversy, it raises legitimate questions about the regulatory environment and whether the process is achieving the purpose for which the institution was established,” he said.
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‎Agbese called on the House Committee on Insurance and Actuarial Matters to examine the situation and intervene where necessary.
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‎“The House Committee on Insurance and Actuarial Matters cannot sit back and watch an important institution such as NAIC become weakened by regulatory decisions that may not have sufficiently considered their wider consequences. Our responsibility is to protect the integrity of the law and the interests of Nigerians. If these concerns are not addressed, the committee should be prepared to examine the matter and take the appropriate legislative steps,” he said.
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‎He said NAICOM’s regulatory powers should be exercised in a manner that strengthens the industry rather than undermining confidence in it, citing the Nigerian Deposit Insurance Corporation (NDIC) as an institution whose operations, he said, had not generated comparable controversy.
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‎Agbese also linked the dispute to the federal government’s economic ambitions, saying the insurance industry would be essential to efforts to mobilise long-term capital, protect businesses and sustain investment.
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‎“The Renewed Hope Agenda cannot be separated from the institutions that provide financial protection for businesses, farmers and investors. If we genuinely want to build a $1 trillion economy, we must strengthen institutions such as NAIC, protect jobs and create an environment where investors have confidence in the system. Weakening institutions that support investment is inconsistent with the economic transformation we are trying to achieve,” he said.
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Agbese urged NAICOM to review contentious aspects of its implementation of NIIRA 2025 and engage affected stakeholders, insisting that regulatory reform must strengthen rather than weaken institutions such as NAIC.