…Finance Ministry seeks detailed response, legal justification from NAICOM
The Federal Government has intervened in the dispute between the National Insurance Commission (NAICOM) and the managements of NICON Insurance Limited and Nigeria Reinsurance Corporation (Nigeria Re) over the ongoing insurance industry recapitalisation exercise.
The intervention followed a petition by NICON and Nigeria Re challenging certain fees and capital transfer directives issued by the insurance regulator.
In a letter dated August 6, 2026, with reference number F/LEG/0608/2026/22, the Office of the Honourable Minister of Finance and Coordinating Minister of the Economy, signed by the Permanent Secretary, Raymond Omachi, a copy sighted by this medium, directed the Commissioner for Insurance at NAICOM to provide a detailed response and legal justification on the issues raised by the two companies.
The ministry said it received a petition dated July 27, 2026, from NICON Insurance Limited and Nigeria Reinsurance Corporation concerning the recapitalisation exercise being implemented under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
According to the ministry, the companies raised concerns over two major issues.
The first relates to the assessment and demand for a 1 per cent Capital Injection Fee, in addition to processing and verification fees prescribed under Appendix 2 of NAICOM’s Minimum Capital Requirement Guidelines. The charges reportedly amount to ₦305 million for NICON and ₦375 million for Nig Re.
The second concerns NAICOM’s directive requiring existing and operational insurance companies to transfer their entire capital injection funds into an escrow account with the Central Bank of Nigeria (CBN), rather than the 10 per cent statutory deposit requirement stipulated under Section 16(3) of NIIRA 2025.
The petitioners, the ministry said, maintained that they had complied with the statutory recapitalisation deadline of July 31, 2026, by injecting ₦20 billion and ₦30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited.
The amounts, according to the petition, exceeded their adjusted recapitalisation requirements of ₦16 billion for NICON and ₦28 billion for Nig Re.
The two companies also claimed to have deposited ₦2.5 billion and ₦3.5 billion, respectively, with the CBN in accordance with Section 16(3) of NIIRA 2025. They further stated that they had made initial fee payments of ₦80 million and ₦75 million, respectively.
The Finance Ministry consequently asked NAICOM to provide a detailed explanation and legal basis for the disputed charges and directives.
Pending determination of the petition, the ministry also requested the Commission to suspend enforcement of the contested processing and verification fees, the 1 per cent capital injection fee demands, and the directive requiring the full capital injection funds to be transferred into an escrow account against NICON Insurance Limited and Nigeria Reinsurance Corporation.
The intervention comes shortly after NAICOM officially concluded the 12-month recapitalisation exercise on July 31, 2026, with 43 insurance and reinsurance companies meeting the statutory minimum capital requirements and receiving new operating licences.
