A dispute over Nigeria’s ongoing insurance sector recapitalisation programme has deepened as Nicon Insurance Limited and Nigeria Reinsurance Corporation accused the National Insurance Commission (NAICOM) of alleged legal and financial breaches in the implementation of the exercise.
The two firms made the allegations in a statement issued on Thursday in response to an earlier rejoinder by the insurance regulator. They insisted that their petition to the Economic and Financial Crimes Commission (EFCC) raises serious questions of legality and accountability rather than a routine regulatory disagreement.
According to the companies, NAICOM allegedly imposed financial requirements that are not supported by provisions of the Nigerian Insurance Industry Reform Act 2025. They specifically questioned a one per cent levy reportedly demanded on shareholders’ funds, arguing that such a requirement lacks legal backing under the law governing the recapitalisation process.
The firms further alleged that funds collected under the levy were not remitted into the Treasury Single Account as expected, but were instead paid into an account allegedly operated by the commission.
Another area of disagreement relates to capital injections required under the recapitalisation programme. NICON and Nigeria Re contended that NAICOM demanded the transfer of 100 per cent of capital injections into the Central Bank of Nigeria, whereas the law, according to their interpretation, only requires 10 per cent.
The companies also alleged that they paid about N180 million for consultants who were expected to assist with aspects of the recapitalisation process. They claimed the consultants were never deployed and that NAICOM personnel eventually carried out the assignments.
Despite the disagreement, both organisations maintained that they have fully complied with the recapitalisation requirements stipulated under the law and remain financially qualified under the reform framework.
They stated that they would continue to defend the interests of their shareholders and policyholders through legal means, insisting that regulatory authorities must also operate within the limits prescribed by law.
The controversy comes amid a broader reform effort aimed at strengthening Nigeria’s insurance industry through increased capital requirements and enhanced regulatory oversight. Supporters of the recapitalisation exercise argue that stronger capital bases will improve the industry’s capacity to absorb risks and meet obligations to policyholders.
However, the latest dispute highlights the challenges that can arise when regulators and operators disagree on the interpretation and implementation of reform measures.
As both sides maintain their positions, attention is likely to shift to the relevant legal and investigative authorities to determine the validity of the claims and ensure that the recapitalisation process proceeds transparently and in accordance with the law.
