The National Insurance Commission, being the body saddled with the responsibility of regulating the insurance sector in Nigeria, issued the Corporate Governance Guidelines for Insurance and Reinsurance Companies in Nigeria 2021.
The Financial Reporting Council of Nigeria issued the Nigerian Code of Corporate Governance (NCCG) 2018 in line with its object to ensure good corporate governance practices in the public and private sectors of the Nigerian economy.[1] This raises questions as to the status of the Guidelines in relation to the NCCG 2018.
Paragraph 1.0 (iv), (v), and (vi) of the Guidelines resolve this issue by stating that the Guidelines are to assist in the implementation of the NCCG 2018 and shall be read and interpreted in conjunction with the NCCG 2018. Thus, Insurance and Reinsurance companies are expected to comply with both the NCCG 2018 and the new Guidelines. Non-compliance with the NCCG 2018 and the Guidelines attracts a penalty of a fine or imprisonment or both.[2]
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Footnotes:
[1] Section 11(c) Financial Reporting Council of Nigeria Act, 2011
[2] Section 49(5) National Insurance Commission Act 1997