The Federal Ministry of Finance has directed the National Insurance Commission, NAICOM, to suspend enforcement of disputed recapitalisation fees and a directive requiring two state-owned insurers to transfer their full capital injections into a Central Bank of Nigeria, CBN, escrow account.
The directive follows a petition submitted by NICON Insurance Limited and Nigeria Reinsurance Corporation challenging the regulatory demands made under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
In a letter signed by the Permanent Secretary of Finance, Raymond Omachi, on behalf of Finance Minister Taiwo Oyedele, the ministry asked NAICOM to provide a detailed legal justification for demanding a 1% capital injection fee alongside processing and verification charges. The assessments totaled N305 million for NICON and N375 million for Nigeria Re.
The petitioners argued that NAICOM’s demand for operational firms to transfer their entire fresh capital into a CBN escrow account exceeds the 10% statutory deposit requirement outlined in Section 16(3) of NIIRA 2025.
Both companies confirmed they met the July 31 recapitalisation deadline by securing funds above their adjusted requirements into Mudaraba Term Deposit accounts at Lotus Bank N20 billion for NICON (against a N16 billion requirement) and N30 billion for Nigeria Re (against a N28 billion requirement). Additionally, the firms deposited N2.5 billion and N3.5 billion respectively with the CBN to satisfy statutory obligations, alongside initial fee payments.
Pending the resolution of the petition and NAICOM’s formal response, the Ministry of Finance has ordered the immediate suspension of all enforcement actions regarding the contested fees and escrow transfer directives against both entities.
