Insurance recapitalisation: NICON, Nigeria Re petition EFCC, accuse NAICOM of financial irregularities

From Adesuwa Tsan, Abuja

The National Insurance Corporation of Nigeria (NICON) and the Nigeria Reinsurance Corporation (Nigeria Re) have intensified their challenge to the National Insurance Commission (NAICOM) over the ongoing insurance industry recapitalisation exercise, accusing the regulator of procedural breaches and failing to account for disputed financial demands.

The two companies, in separate statements issued by their managements, alleged that NAICOM had failed to respond to substantive issues raised in a petition submitted to the Economic and Financial Crimes Commission (EFCC), choosing instead to divert attention from the allegations in its September 10, 2026, rejoinder.

The dispute centres on demands for one percent of shareholders’ funds, the alleged unlawful 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 which the companies said 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.

“We expect answers, not diversion,” the companies said.

NICON and Nigeria Re, further alleged that NAICOM collected substantial sums from insurance companies under the pretext of engaging consultants to conduct verification exercises connected with 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.

The companies also questioned the handling of the one per cent financial demand, alleging that funds collected by NAICOM were not remitted to the TSA but were instead paid into the commission’s account.

They further challenged the regulator’s role in determining the legality of its own disputed demands, arguing that NAICOM should not simultaneously act as the regulatory authority, collector of disputed funds and final arbiter of 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.

The two insurance companies, however, maintained that they had met the recapitalisation requirements prescribed 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.

They added that they would continue to defend the interests of their companies, shareholders and policyholders through appropriate legal and constitutional channels.

Rejecting any suggestion that NAICOM’s regulatory position placed it above legal scrutiny, the companies said: “NAICOM is a regulator, not the law. It is itself subject to the law.”

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