The Auditor-General for the Federation (AuGF) has revealed that the National Insurance Commission (NAICOM) underreported its 2022 revenue by N4,047,762,249.90 and made a duplicate payment of N248 million to RT Briscoe for vehicles.
According to the Auditor-General’s report for the 2022 financial year, the commission collaborated with its external auditor to manipulate figures in its audited financial statements, highlighting weak internal controls.
The allegations arise from the 2022 audited financial statement covering the tenure of Sunday Thomas, former Commissioner of Insurance. Appointed in 2020, Thomas’s term ended in 2024 and was not renewed by President Bola Tinubu’s administration.
NAICOM has declined to comment on the allegations which may cast a shadow over Thomas’s tenure. Thomas, a seasoned insurance professional with over 40 years’ experience in leadership, regulatory, and advisory roles, retired after a report by Steve Oronsaye set an eight-year tenure limit for directors in ministries, departments, and agencies. Thomas held positions including Director-General of the Nigerian Insurers Association from 2010, Deputy Commissioner of Insurance (Technical) at NAICOM in 2017, and Commissioner for Insurance from 2020 to 2024.
Requests for comments from current Insurance Commissioner Olusegun Omosehin were ignored.
The Auditor-General noted that NAICOM’s source documents showed revenue of N9,241,026,112.90 for 2022, but its audited financial statements reported only N5,193,263,863.00. This discrepancy of N4,047,762,249.90 violates paragraph 112 of the 2009 Financial Regulations, mandating accurate accounting of public funds.
NAICOM defended itself, explaining no intentional understatement occurred. The audit reflected only the agency’s operating fund, excluding the Education Fund (N2,542,057,034) and the Security and Insurance Development Fund (N1,694,704,689), which were reported separately. Combining these two funds totals N4,236,761,723, which they say accounts for the difference.
However, the gap between NAICOM’s stated total and the Auditor-General’s figure led to the query being upheld. As a result, NAICOM was instructed to submit trial balances, ledgers, and audited accounts for 2020 to 2022 to the Public Accounts Committees (PAC) of the National Assembly; provide reconciliations; remit the shortfall of N4,047,762,249.90 to the Consolidated Revenue Fund; and present evidence of remittance to lawmakers.
Non-compliance risks sanctions for failure to collect and account for government revenue, as specified in paragraphs 3112 and 3129 of the 2009 Financial Regulations.
Regarding double payment for vehicles, the Auditor-General reported that NAICOM violated paragraphs 415, 603, and 708 of the regulations by making duplicate payments totaling N247,999,995.00 to RT Briscoe. The payments covered two 2021 Toyota Hiace vans and six 2020 Toyota Hilux vehicles.
The payments were made twice on 31 March 2022 via Remita references and batch numbers, leading to a financial loss and the vehicles not being recognised as Property, Plant, and Equipment in NAICOM’s audited financials, misleading statement users.
NAICOM claimed no double payment occurred, stating the first payment attempt on the Treasury Single Account (TSA) platform failed, was reversed, and later successfully reprocessed.
The Auditor-General rejected this defense, calling on the Insurance Commissioner to explain the duplicate payments and omission from financial records before the PAC. NAICOM was ordered to submit the related bank statements for both payments.
Federal lawmakers were tasked with recovering and ensuring the duplicate payment is returned to the Treasury. Failure to comply would trigger sanctions per paragraph 3106 of the 2009 Financial Regulations.
