The Ministry of Finance has directed the National Insurance Commission (NAICOM) to suspend enforcement of disputed recapitalisation fees and escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation (Nigeria Re), pending the determination of a petition by the two firms. The directive was contained in a letter dated August 6, 2026, and signed by the Permanent Secretary, Finance, Raymond Omachi, on behalf of the Minister of Finance and Coordinating Minister of the Economy. The letter, which was addressed to the Commissioner for Insurance, NAICOM, was received by the commission on August 7, 2026. According to the letter seen by Daily Trust, the ministry received a petition dated July 27 from NICON and Nigeria Re over the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The companies alleged that NAICOM assessed and demanded a one per cent capital injection fee, alongside processing and verification fees, amounting to N305 million for NICON and N375 million for Nigeria Re. They also accused the commission of directing existing insurance companies to transfer their entire capital injection funds into an escrow account with the Central Bank of Nigeria (CBN), instead of the 10 per cent statutory deposit required under Section 16(3) of NIIRA 2025. The ministry said the companies described the one per cent charge as illegal, an additional N180 million capitalisation charge as questionable, and the full-capital escrow directive as unconstitutional. The firms said they had met the July 31, 2026, recapitalisation deadline, with NICON injecting N20 billion and Nigeria Re N30 billion into Mudaraba Term Deposit accounts with Lotus Bank. They said the amounts exceeded their adjusted capital requirements of N16 billion and N28 billion, respectively. They also said they deposited N2.5 billion and N3.5 billion with the CBN and paid N80 million and N75 million, respectively, to NAICOM as initial fees. The ministry asked NAICOM to provide a detailed response and legal justification for the issues raised. It also directed the commission to suspend enforcement of the disputed processing fees, one per cent capital injection charges and full-capital escrow transfer directives against the two firms pending the determination of the petition. The dispute comes amid the industry-wide recapitalisation exercise mandated by NIIRA 2025. In an open letter to President Bola Ahmed Tinubu dated August 5, the companies accused NAICOM of making unlawful and unconstitutional monetary demands. They alleged that the commission demanded N180 million from them as a recapitalisation regulation fee, purportedly meant for a consultant to verify the exercise. Efforts to obtain NAICOM’s response were unsuccessful as the commission did not respond to calls and messages.
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