The National Insurance Commission (NAICOM) has sacked the Board and Management of African Alliance Insurance Plc, citing insolvency and prolonged failure to meet annuitant and policyholder obligations.

The takeover by NAICOM, effective October 30, 2024, follows comprehensive monitoring that revealed severe financial instability and governance lapses, leading to uncertainties surrounding claims settlements and payments.

NAICOM explained the decision was based on a thorough review of African Alliance’s financial health, governance practices, and operational procedures. The findings reportedly pointed to fundamental issues affecting the firm’s ability to operate securely, thereby prompting intervention. African Alliance Insurance Plc is one of Nigeria’s oldest life assurance companies.

The Commission has appointed an Interim Management Board to take charge of the company’s affairs. Dr. Haruna Mustapha will serve as Chairman, supported by a leadership team including Mr. Jacob Erhabor as Managing Director/CEO; Mr. Wasiu Amao as Executive Director (Technical); Ms. Oremeyi Longe as Executive Director (Finance); Mr. Anthony Achebe as a Non-Executive Director and Haj. Halimatu M. Khabeeb, also a Non-Executive Director. This new management is tasked with stabilizing operations, reinforcing regulatory compliance, and initiating reforms to address the company’s underlying challenges.

NAICOM assured stakeholders of its commitment to minimise disruptions and ensure service continuity. It stated that the objective of the takeover is to safeguard the interests of the firm’s annuitants, policyholders, and broader stakeholders, as well as to uphold stability within Nigeria’s insurance industry.