The National Insurance Corporation of Nigeria (NICON) and the Nigeria Reinsurance Corporation (Nigeria Re) have stepped up their challenge to the National Insurance Commission (NAICOM) over the ongoing insurance industry recapitalisation exercise.
In separate statements issued by their managements, the two companies accused the regulator of procedural breaches and failing to adequately address questions surrounding disputed financial demands linked to the recapitalisation process.
The companies said NAICOM failed to respond to substantive allegations contained in a petition submitted to the Economic and Financial Crimes Commission (EFCC), instead focusing on issues they described as a diversion from the core allegations in the commission’s September 10, 2026 rejoinder.
They said the dispute centres on NAICOM’s demand for one per cent of shareholders’ funds, the alleged remittance of the funds to the Treasury Single Account (TSA), a requirement for 100 per cent recapitalisation funding and the collection of N180 million for a verification exercise.
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According to NICON and Nigeria Re, the verification exercise for which the money was collected was not conducted by the appointed consultants.
“Rather than answer the specific allegations contained in the petition before the EFCC, NAICOM has remained conspicuously silent on the critical questions of law, accountability and the handling of shareholders’ funds,” the companies said.
They added: “We expect answers, not diversion.”
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The companies further alleged that NAICOM collected substantial sums from insurance firms under the guise of engaging consultants to conduct verification exercises as part of the recapitalisation process.
“For instance, NAICOM demanded and received a total sum of N180 million from NICON Insurance Limited and Nigeria Reinsurance Corporation, without sending any consultants for the verification exercise but instead sent their staff members,” they alleged.
NICON and Nigeria Re also questioned the handling of the one per cent financial demand, alleging that funds collected by NAICOM were paid into the commission’s account rather than remitted to the TSA.
The companies further questioned whether NAICOM should determine the legality of its own disputed financial demands, arguing that the regulator should not simultaneously serve as the regulatory authority, collector of disputed funds and final arbiter over the legality of its actions.
“NAICOM cannot simultaneously be the regulator, the collector of disputed funds and the final judge of the legality of its own demands,” they stated.
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Despite the dispute, NICON and Nigeria Re maintained that they had satisfied the recapitalisation requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
“For the avoidance of doubt, NICON Insurance Limited and Nigeria Reinsurance Corporation are fully recapitalised in accordance with NIIRA 2025,” they said.
The companies said they would continue to protect the interests of their companies, shareholders and policyholders through appropriate legal and constitutional channels.
They also rejected any suggestion that NAICOM’s regulatory authority places it beyond legal scrutiny.
“NAICOM is a regulator, not the law. It is itself subject to the law,” they said.
