Tinubu urged to review NAICOM leadership over recapitalisation controversy - The Guardian Nigeria News
The Good Governance Assembly (GGA) has urged President Bola Ahmed Tinubu to review the leadership of the National Insurance Commission (NAICOM) amid concerns raised over aspects of the recently concluded insurance industry recapitalisation exercise.
The civil society organisation, in a statement signed by its Executive Director, Peter Bawa, said its position followed petitions and complaints submitted to relevant government institutions concerning some regulatory requirements introduced during the exercise.
GGA said the complaints, reportedly submitted to the Economic and Financial Crimes Commission (EFCC), the Federal Ministry of Finance and the Presidency, sought clarification on issues relating to fees and the handling of capital raised by some insurance companies.
The group referred to concerns raised by NICON Insurance LimitedΒ and Nigeria Reinsurance Corporation regarding certain requirements associated with the recapitalisation exercise.
It also cited a directive by the Ministry of Finance concerning the suspension of enforcement of some of the disputed requirements against the two companies pending further consideration of the matter.
Bawa said the issues deserved to be resolved transparently to protect confidence in the insurance industry and ensure that regulatory requirements were properly grounded in law and clearly communicated to operators.
He said the organisation was particularly concerned about reports concerning a proposed one per cent capital-related fee and arrangements involving the transfer of recapitalisation funds into designated accounts.
GGA also raised questions concerning an amount reportedly collected in connection with consultancy services, urging the appropriate authorities to establish the facts and determine whether due procedures were followed.
The organisation said the controversy should not undermine the broader objective of the recapitalisation exercise, which was aimed at strengthening the financial capacity of insurance companies and improving the resilience of the sector.
It noted that the industry had reportedly raised more than N1.079 trillion in fresh capital, describing the development as significant to efforts to deepen insurance penetration and strengthen the market.
The group therefore urged the Federal Government to ensure that the outstanding issues were addressed promptly and transparently.
GGA acknowledged that NAICOM had rejected reports suggesting that its leadership had been found culpable of wrongdoing and had also dismissed reports concerning the alleged detention of the Commissioner for Insurance as false.
The organisation said its call was for the relevant authorities to establish the facts surrounding the petitions and disputed regulatory requirements.
It urged all parties involved to allow the appropriate institutions to examine the issues and make their findings public where appropriate.
GGA said resolving the controversy would help protect confidence in the insurance industry and ensure that implementation of the recapitalisation programme remained focused on strengthening the sector.
The organisation said it would continue to monitor developments and engage relevant government institutions on the matter.
