NAICOM releases corporate governance guidelines, calls for compliance

The National Insurance Commission (NAICOM) has released Insurance industry corporate governance guidelines 2021, calling for full compliance by insurance and reinsurance companies.

The implementation of the guidelines issued on March 17, 2021 according to NAICOM will commence on June 1, 2021.

NAICOM noted that non-compliance with the Nigerian Code of Corporate Governance (NCCG) 2018 and the Insurance industry corporate governance guidelines 2021, 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.

NAICOM maintained that its principal object is to ensure effective administration, supervision, regulation and control of the insurance business in Nigeria, adding that Section 11 C and 51 C of the Financial Reporting Council of Nigeria (FRCN) Act, 2011 confers on the FRCN the power to ensure good Corporate Governance Practices in ublic and private sectors of the Nigerian economy.

It noted that the FRCN issued the Nigerian Code of Corporate Governance (NCCG) 2018 to institutionalize corporate governance best practices in all Companies in Nigeria and repealed all other sectorial codes.

The Commission in exercise of its powers under the National Insurance Commission Act 1997 and in collaboration with FRCN hereby issues its Corporate Governance Guidelines (the Guidelines) to assist the implementation of the NCCG 2018, it said.
It posited that the Guidelines shall be read and interpreted in conjunction with the provision of NCCG 2018 and replaces the NAICOM Code of Good Corporate Governance for the Insurance Industry 2009.