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Controversy appears to be brewing in the insurance sector following revelation that the recently appointed Chairman of the National Insurance Commission, NAICOM, Alhaji Abubakar Sani, was a director of an insurance broking firm.
Accordingly, aggrieved industry stakeholders who spoke to Vanguard lamented that the appointed is in breach of the industry corporate governance rules.
The stakeholders said that as at the time of the appointed by the federal government in April 2022 Sani was also a director in ADSA Insurance Brokers Limited.
According to one of the stakeholders the federal government, through NAICOM, should have carried out due diligence before making such appointment.
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He said: “The position of NAICOM chairman is very critical. Therefore, in a situation where the chairman is a regulator as well as an operator, there is every tendency of being biased when decisions that will affect the operator is to be taken.
“NAICOM as the regulatory body of the insurance industry is also the statutory adviser to the federal government on insurance matters.
“Therefore it is a sign of failure for NAICOM to stand by and allow the federal government to appoint an operator as a regulator.
“NAICOM should have insisted that Sani relinquish his position in the broking firm before becoming the chairman of the regulatory body.
“If this situation is not addressed, this would amount to double standard and could be sending a bad signal to the industry.”
Meanwhile, efforts by Vanguard to get the position of NAICOM proved abortive as the spokesperson, Razaak Salami, did not respond to the enquiry on this issue.
