The Federal Ministry of Finance has queried the National Insurance Commission over its alleged demand for a one per cent capital injection fee and other recapitalisation-related charges from NICON Insurance Limited and Nigeria Reinsurance Corporation.
The query followed a petition submitted to President Bola Tinubu by NICON Insurance and Nigeria Reinsurance, alleging that NAICOM unlawfully demanded recapitalisation fees and directed the transfer of capital injection funds in the ongoing recapitalisation of the insurance industry.
In the petition, the companies alleged that NAICOM demanded a one per cent shareholders’ fund charge, additional processing and verification fees, and other payments under the Commission’s Minimum Capital Requirement Guidelines.
The disputed charges were put at ₦305 million for NICON Insurance Limited and ₦375 million for Nigeria Reinsurance Corporation.
The petitioners also challenged what they described as a directive requiring existing and operational insurance companies to transfer their entire capital injection funds into an escrow account with the Central Bank of Nigeria, contrary to what they said was the 10 per cent statutory deposit requirement under Section 16(3) of the Nigerian Insurance Industry Reform Act, 2025.
Reacting to the petition, the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, through the Permanent Secretary, Finance, Raymond Omachi, directed NAICOM to provide a detailed response and legal justification for the contested demands.
The query, dated August 6, 2026, with reference number F/LEG/0608/2026/22, was titled, “Re-Illegal demand of ₦500 million Shareholders’ Funds constituting an illegal fee of 1% of the capital injection, ₦180 million as a questionable capitalisation charge and the unconstitutional request to transfer more than 10% of the funds to the Central Bank of Nigeria in violation of Section 16(3) of the NIIRA 2025.”
The ministry said it had received the petition dated July 27, 2026, from NICON Insurance Limited and Nigeria Reinsurance Corporation regarding the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act, 2025.
According to the query, the petitioners complained about the assessment and demand for a one per cent capital injection fee, alongside additional processing and verification fees, amounting to ₦305 million for NICON and ₦375 million for Nigeria Re.
They also complained about directives allegedly requiring them to transfer their entire capital injection funds into a CBN escrow account, instead of the 10 per cent statutory deposit prescribed under the law.
The ministry noted that the petitioners claimed to have complied with the July 31, 2026 statutory deadline by injecting ₦20 billion and ₦30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of ₦16 billion and ₦28 billion.
They also claimed to have deposited ₦2.5 billion and ₦3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025, and to have made initial fee payments of ₦80 million and ₦75 million.
“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised,” the ministry stated.