NICON, Nigeria Re Accuse NAICOM of Criminal Breaches Over Recapitalisation - THISDAYLIVE

The ongoing recapitalisation of Nigeria’s insurance industry, being implemented under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, has triggered a fresh dispute between the National Insurance Commission (NAICOM) and two major industry operators, Nicon Insurance Limited and Nigeria Reinsurance Corporation.

The recapitalisation is aimed at strengthening the financial capacity of insurance and reinsurance companies, improving their ability to meet obligations to policyholders and enhancing the resilience of the sector.

As part of the process, companies have been required to meet prescribed capital requirements and comply with regulatory verification and documentation procedures.

It is against this backdrop that NICON and Nigeria Re petitioned the Economic and Financial Crimes Commission (EFCC), alleging that certain actions and demands made during the exercise violated provisions of the law and raised questions of financial accountability.

NAICOM subsequently issued a rejoinder on September 10, 2026, disputing the allegations. In their latest response, however, NICON and Nigeria Re maintained that the issues raised in their petition were matters of law and accountability requiring investigation, rather than a civil disagreement with the regulator.

Nicon Insurance Limited and Nigeria Reinsurance Corporation have accused the National Insurance Commission (NAICOM) of alleged breaches bordering on criminal conduct in the implementation of the ongoing insurance industry recapitalisation exercise.

The two insurance companies, in a statement issued on Thursday in response to NAICOM’s September 10, 2026 rejoinder, said their petition before the EFCC was based on allegations of violations of law, accountability and the handling of shareholders’ funds.

They insisted that the matter was not a civil disagreement with the insurance regulator but a set of allegations requiring independent investigation by the appropriate authorities.

The companies accused NAICOM of failing to respond directly to the issues raised in their EFCC petition, alleging instead that the commission had sought to divert public attention from questions arising from the recapitalisation exercise.

According to NICON and Nigeria Re, the petition centred principally on four allegations, including what they described as the “criminal demand” for a one per cent levy on shareholders’ funds during the recapitalisation process.

They argued that there was no provision in NIIRA 2025 authorising or imposing such a payment.

The companies therefore demanded that NAICOM explain the legal basis for the levy, the amount collected and the destination of the funds.

They also alleged that the one per cent payments collected by the commission were not remitted to the Federal Government’s Treasury Single Account (TSA), but were instead paid into an account operated by NAICOM.

“This raises fundamental questions requiring independent investigation,” the companies said.

The two firms further challenged what they described as NAICOM’s demand for the transfer of 100 per cent of capital injections to the Central Bank of Nigeria (CBN).

They argued that the demand was inconsistent with Section 16(3) of NIIRA 2025, which, according to them, requires existing insurance companies to deposit only 10 per cent of their capital injection.

Another allegation raised by the companies concerned funds allegedly demanded and received by NAICOM from insurance companies for the engagement of consultants to conduct verification exercises as part of the recapitalisation process.

NICON and Nigeria Re specifically alleged that NAICOM demanded and received N180 million from Nicon Insurance Limited and Nigeria Reinsurance Corporation for the purported engagement of consultants.

The companies, however, alleged that no consultants were deployed for the verification exercise, claiming that NAICOM instead used its own staff.

“NAICOM obtained several millions of naira from insurance companies under the pretext of engaging consultants,” the companies alleged.

NICON and Nigeria Re said the allegations contained in their petition were “straightforward questions of law and accountability” which, in their view, could not be resolved through newspaper rejoinders.

“The issue before the Nigerian public is not whether NAICOM can issue a press statement. It is whether the actions taken during the recapitalisation exercise were authorised by law,” they said.

The companies also questioned the regulator’s role in determining the legality of demands which they have disputed.

“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 companies nevertheless maintained that they had complied fully with the recapitalisation requirements stipulated by NIIRA 2025.

“For the avoidance of doubt, NICON Insurance Limited and Nigerian 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 what they described as appropriate legal and constitutional channels.

The firms also rejected any suggestion that NAICOM’s regulatory powers placed it beyond legal scrutiny.

“NAICOM is a regulator, not the law. It is itself subject to the law,” they declared.

According to the companies, the issues raised in their petition had already been brought before relevant institutions, including the EFCC and the courts.

They expressed confidence that the authorities would independently examine the facts and determine whether the actions complained of were lawful.

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

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