Several retirees of African Alliance Insurance (AAI) have voiced their frustration over the non-payment of their annuity, a situation that has severely impacted their well-being. The retirees revealed that they have not received their monthly annuity payments since last year, with some even struggling to meet basic needs.
The situation began after the National Insurance Commission (NAICOM) sacked AAI’s board and management in October 2024, appointing an interim management led by Dr. Haruna Mustapha as Chairman and Mr. Jacob Erhabor as Managing Director/CEO. The Commissioner for Insurance, Olusegun Omosehin, explained that the move was made to protect the integrity and stability of the insurance company and the broader sector. “One of the core mandates of NAICOM is to ensure the integrity of insurance companies, and we are taking all necessary steps in the interest of the public,” Omosehin stated at a press briefing in Lagos.
Despite the change in leadership, many retirees are still facing severe financial hardship due to the delayed payments. One affected annuitant expressed his anger and disappointment, saying, “May all the deities in Yorubaland get ready to act, for it is my right to get paid when due. AAI and its collaborators have denied me that agreement since last August, and now it’s April 2025.”
Another retiree, Babatunde Asije, shared his distress, noting that the last payment was made in August 2024, and only in late March 2025 did AAI manage to pay for two months. Asije, who had to protest alongside other retirees, described the situation as devastating. “The non-payment is affecting me greatly. I can’t even afford to buy my medications or feed my family. It has turned me into a dependent, almost a beggar. After serving the country for over 35 years, this is how we are treated,” he lamented.
Asije also expressed frustration over the lack of accountability for the previous AAI management, saying, “The people who ran the company into this mess are walking free, with no one questioning them. Why haven’t they been held responsible?”
Dele Deeje, another retiree, confirmed that he too had received only two months’ worth of payment, leaving him with five months of unpaid annuity. He expressed gratitude for his survival, as the lack of payment has greatly affected his quality of life. “I have been battling health challenges for the past year, and without money for food or medication, it’s been difficult. But I thank God I am still alive,” he said.
The annuitants have continued to demand that AAI and the regulatory body, NAICOM, take immediate action to resolve the issue. They pointed out that their agreement with AAI stipulated that payments would be made between the 1st and 21st of each month, a timeline that has not been adhered to for months. The retirees also expressed dissatisfaction with NAICOM’s oversight, accusing the regulator of failing to properly monitor the company.
In response to the mounting concerns, NAICOM has stated that it would provide a robust response to the situation in the near future.