In pursuant of the national implementation of the Nigerian Code of Corporate Governance (NCCG) 2018, the National Insurance Commission (NAICOM) has rolled out corporate governance guidelines for application in the insurance industry from June 1, 2021.
NAICOM has already published on its website the guidelines issued on March 17, 2021, directing all insurance and reinsurance companies to comply with the guidelines and the Nigerian Code of Corporate Governance 2018.
Straight talking NAICOM said non-compliance with the Nigerian Code of Corporate Governance (NCCG) 2018 and this guidelines shall be a violation of Section 49(1)b of the National Insurance Commission Act 1997 and attracts penalty under Section 49(5) of the Act.
The Commission which stated that it is exercising the statutory provision in the National Insurance Commission Act 1997, and working in collaboration with Financial Reporting Council of Nigeria Act 2011, said the legislation frames it to ensure effective administration, supervision, regulation and control of the insurance business in Nigeria.
Besides, NAICOM said that Section 11 C and 51 C of the Financial Reporting Council of Nigeria (FRCN) Act, 2011 confers on the FRCN to ensure good corporate governance practices in public and private sectors of Nigeria economy.
Refreshing the genesis, the insurance regulator noted that the FRCN issued the Nigerian Code of Corporate Governance (NCCG) 2018 to establish interwoven corporate governance best practices in all companies in Nigeria and repealed all other sectorial codes.
It cleared that the guidelines shall be read and interpreted in conjunction with the provision of NCCG 2018, consequently, it will replace the NAICOM Code of Good Corporate Governance for the Insurance Industry 2009.