Finance Minister Taiwo Oyedele has formally questioned the National Insurance Commission (NAICOM) regarding the collection of a one percent Capital Injection Fee and additional charges imposed on firms undergoing recapitalization. This action stems from complaints filed by NICON Insurance Limited and Nigeria Reinsurance Corporation, which contest these levies and the mandate to move capital funds into a Central Bank of Nigeria escrow account.
A memo issued by the Ministry of Finance, signed by Permanent Secretary Raymond Omachi, requires NAICOM to justify these requirements legally. The ministry has ordered the suspension of enforcement actions against NICON and Nigeria Re regarding these specific fees until the petitions are resolved. The companies argue these costs, totaling N305 million for NICON and N375 million for Nigeria Re, exceed statutory obligations.
Both insurers assert they reached the July 31, 2026, recapitalization deadline by placing funds into Lotus Bank accounts, exceeding required amounts. They further highlight that they have already fulfilled the 10 percent statutory deposit mandate as outlined in the Nigeria Insurance Industry Reform Act of 2025. Conversely, NAICOM insists that these regulations have been in place since last year and that other companies within the industry have already adhered to them.
