Enforcement of 10-year Tenure Limit to Reshape Nigerian Insurance Industry Leadership

Samuel Mobolaji

Since the implementation of the 10-year tenure limit policy on January 1, 2024, the Nigerian insurance industry has witnessed significant leadership changes, with at least eight CEOs and 10 other executive directors stepping down from their roles.

The policy, enforced by the National Insurance Commission (NAICOM), aims to improve corporate governance and inject fresh leadership into the sector.

The affected CEOs, including top executives from prominent firms such as Leadway Assurance, Consolidated Hallmark Insurance, NEM Insurance, GNI, Sterling Assurance, and Capital Express Assurance, have either retired or been replaced. In some cases, successors have already been confirmed, while in others, acting CEOs are currently overseeing operations until permanent appointments are made.

The most recent example is the CEO of Universal Insurance Plc, Mr. Ben Ujoatuonu, who stepped down due to the policy. An acting managing director has taken over for a 90-day period as mandated by the tenure limit policy.joatuonu’s departure was prompted by a NAICOM directive, following the company’s failure to comply with the new regulations.

The commission had issued a warning, requiring the immediate suspension of the CEO and the appointment of an interim leader, a move that Universal Insurance quickly acted upon.

The enforcement of the policy has reshaped leadership across several key players in the industry. At Leadway Assurance, Mr. Tunde Hassan-Odukale and Ms. Adetola Adegbayi were replaced by Mr. Gboyega Lesi and Mrs. Oluwafunmilayo Amanwa, respectively.

Similarly, Mr. Eddie Efekoha, formerly CEO of Consolidated Hallmark Insurance, transitioned to a group CEO role at Consolidated Hallmark Holdings (CHH) Plc, making way for Ms. Mary Adeyanju to step up as the new CEO.

Other notable transitions include Mr. Mathew Ogwezhi taking over as CEO of Capital Express Assurance, following the departure of Mrs. Bola Odukale, and Mr. Andrew Ikekhua assuming the CEO role at NEM Insurance Plc after the exit of Mr. Tope Smart, who now serves as the firm’s chairman. Great Nigeria Insurance (GNI) also saw a change, with Mrs. Cecilia Osipitan vacating the CEO position to become Group CEO, while Mrs. Roselyn Ulaeto stepped in as acting CEO. Similarly, Sterling Assurance appointed a new CEO after Dr. Fatai Kayode Lawal’s resignation.

NAICOM has made it clear that companies failing to adhere to the 10-year tenure policy will face sanctions. As a result, several insurance firms are actively searching for replacements for executives who have exceeded the limit.

This policy is being enforced under the powers of the NAICOM Act 1997 and is aligned with the Nigerian Code of Corporate Governance 2018, which limits CEOs and executive directors to a maximum of 10 years in office, with a possible 15 years for those transitioning from executive director to CEO roles within the same company.

According to NAICOM, the policy aims to standardize the industry in line with international best practices, enhance corporate governance, and ensure effective succession planning.

Mr. Segun Omosehin, the current Commissioner for Insurance at NAICOM, reiterated the importance of the policy, emphasizing that it is designed not to disrupt businesses but to promote long-term stability and growth by bringing in new leadership to guide the industry into the future.

The reshuffling of leadership across the insurance sector marks a significant shift, as seasoned executives make way for new leaders poised to drive innovation and strengthen the industry’s global competitiveness.