NICON Insurance Limited and the Nigeria Reinsurance Corporation (Nigeria Re) have filed a petition with the Economic and Financial Crimes Commission (EFCC), accusing the National Insurance Commission (NAICOM) of procedural breaches and financial irregularities during the ongoing insurance industry recapitalisation exercise in Nigeria.
In separate statements issued by their management, the two companies alleged that NAICOM failed to address substantive issues raised in their petition. Instead, they claimed the regulator used its September 10, 2026, rejoinder to divert attention from the specific allegations of misconduct and accountability.
The dispute centers on several financial demands, including a requirement for one per cent of shareholders’ funds and a mandate for 100 per cent recapitalisation funding. NICON and Nigeria Re specifically contested the collection of N180 million for a verification exercise, alleging that NAICOM did not send appointed consultants as promised but instead utilized its own staff members. Furthermore, the companies alleged that funds collected under the one per cent demand were not remitted to the Treasury Single Account (TSA) as required, but were instead deposited into the commission’s own account.
“NAICOM cannot simultaneously be the regulator, the collector of disputed funds and the final judge of the legality of its own demands,” the companies stated.
The insurers argued that NAICOM’s role in determining the legality of its own disputed demands creates a conflict of interest. They emphasized that the regulator is subject to the law and should not be placed above legal scrutiny, asserting that they expect answers to the critical questions of law and accountability rather than diversion.
Despite the ongoing dispute, NICON and Nigeria Re maintained that they have fully met the recapitalisation requirements prescribed under the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The companies stated they will continue to defend the interests of their shareholders and policyholders through appropriate legal and constitutional channels.
<small>Source: The Sun Nigeria — read the original story there.</small>
