Taiwo Oyedele, the Minister of Finance and Coordinating Minister for the Economy, has officially requested an explanation from the National Insurance Commission (NAICOM) regarding the 1% Capital Injection Fee and additional verification charges imposed on insurers. This intervention follows complaints from NICON Insurance Limited and Nigeria Reinsurance Corporation, who argue these demands exceed legal limits.
A formal memorandum issued by the Ministry of Finance, signed by Permanent Secretary Raymond Omachi, demands that NAICOM provide legal justification for these fees. Furthermore, the ministry has instructed the regulator to halt the enforcement of these charges and the mandatory transfer of capital injection funds to the Central Bank of Nigeria until the dispute is resolved.
The two companies contend that they have already met their obligations. NICON and Nigeria Re assert that they injected N20 billion and N30 billion respectively into term deposits, surpassing their requirements, and have already fulfilled the statutory 10% deposit mandate under the 2025 Nigeria Insurance Industry Reform Act. Conversely, NAICOM maintains that these guidelines have been in place since last year and that 43 other companies have already complied with the requirements.
