By Mardiyyah Abubakar
The Federal Government has queried the National Insurance Commission (NAICOM) over disputed fees and escrow demands linked to the ongoing recapitalisation of NICON Insurance Limited and Nigeria Reinsurance Corporation.
The Ministry of Finance directed NAICOM to provide a detailed response and legal justification for the disputed charges.
The query follows a petition by NICON and Nigeria Re, which alleged that NAICOM unlawfully demanded a 1 per cent capital injection fee, additional processing and verification fees, and the transfer of their full recapitalisation funds into an escrow account with the Central Bank of Nigeria (CBN).
According to the petition, the 1 per cent capital injection and other fees amounted to N305 million for NICON and N375 million for Nigeria Re.
The companies also challenged an alleged demand for N180 million in recapitalisation fees and the directive to transfer more than 10 per cent of their injected capital to the CBN.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, issued the query through the Permanent Secretary (Finance), Raymond Omachi, dated August 6, 2026, the query was referenced F/LEG/0608/2026/22.
The ministry said it received the petition dated July 27, 2026, and noted the companies’ concerns over NAICOM’s assessment of the 1 per cent capital injection fee and other charges under Appendix 2 of the Commission’s Minimum Capital Requirement Guidelines.
The companies also disputed NAICOM’s directive requiring them to transfer their entire capital injection into an escrow account at the CBN.
They argued that Section 16(3) of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 requires only a 10 per cent statutory deposit.
NICON and Nigeria Re told the government that they had met the July 31, 2026 recapitalisation deadline.
NICON said it injected N20 billion, exceeding its adjusted requirement of N16 billion, while Nigeria Re injected N30 billion, above its adjusted requirement of N28 billion.
The companies said they placed the funds in Mudaraba Term Deposit accounts with Lotus Bank Limited.
They also said they deposited N2.5 billion and N3.5 billion, respectively, with the CBN in line with Section 16(3) of NIIRA 2025.
The two companies further disclosed that they had made initial fee payments of N80 million and N75 million.
In response, the Ministry of Finance directed NAICOM to justify the disputed demands.
The ministry also ordered the commission to suspend enforcement of the contested processing fees, 1 per cent capital injection fee demands and full-capital escrow transfer directives against NICON and Nigeria Re pending the determination of the petition.
