The Office of the Auditor-General of the Federation (AuGF) has accused the National Insurance Commission (NAICOM) of underreporting more than ₦4 billion in revenue and making a duplicate payment of ₦247.9 million to an auto dealer in 2022. The findings were detailed in the Auditor-General’s 2022 report recently submitted to the National Assembly.
₦4bn Revenue Gap and Alleged Manipulation of Accounts
According to the AuGF, NAICOM’s 2022 source documents showed total revenue of ₦9.24 billion, while its audited financial statements reported only ₦5.19 billion. The discrepancy of ₦4.047 billion, the report said, violated federal financial regulations requiring accurate collection and reporting of public funds.
The Auditor-General further alleged that NAICOM collaborated with its external auditor to alter financial figures—an indication of what it described as “weak internal controls.” The discrepancies occurred during the tenure of former Commissioner for Insurance, Sunday Thomas, whose four-year term ended in April 2024 and was not renewed by President Bola Tinubu’s administration.
NAICOM, however, denied any wrongdoing. The commission said the audit report reflected only its operating fund and excluded two statutory funds—the Education Fund (₦2.54 billion) and the Security and Insurance Development Fund (₦1.69 billion)—which were reported separately. Together, the funds total ₦4.23 billion.
But the Auditor-General insisted that the figures still did not align, prompting the decision to uphold the query.
Lawmakers Demand Full Financial Records
Because of the unresolved discrepancies, NAICOM has been directed to submit its trial balances, general ledger, and audited accounts for 2020, 2021, and 2022 to the Public Accounts Committees (PACs) of the Senate and House of Representatives.
The Commission must also provide reconciliation statements, remit the alleged ₦4.047 billion shortfall to the Consolidated Revenue Fund, and present evidence of payment. Failure to comply could trigger sanctions under the 2009 Financial Regulations.
₦248m Duplicate Vehicle Payment
The Auditor-General also flagged a separate issue: a double payment of ₦247,999,995 to an auto company for two 2021 Toyota Hiace vans and six 2020 Toyota Hilux vehicles.
According to the report, the payment was made twice on March 31, 2022, through two different Remita reference numbers processed in separate batches.
The report added that the vehicles were not recorded as assets in NAICOM’s audited financial statements—an omission it said could mislead stakeholders.
NAICOM disputed this finding as well, insisting that the initial payment attempt on the Treasury Single Account (TSA) platform failed, was reversed, and later reprocessed. But the Auditor-General rejected the explanation and asked the regulator to provide bank statements and proof of any reversal.
Sanctions Loom
The Auditor-General has instructed federal lawmakers to ensure recovery of the alleged duplicate payment and warned NAICOM that failure to produce the required documents and evidence could result in sanctions for gross misconduct and irregular payments as stipulated in the 2009 Financial Regulations.
If enforced, the sanctions may include disciplinary action against responsible officers and possible financial penalties.
