The Economic and Financial Crimes Commission has invited the Commissioner for Insurance, Mr Ayo Omoshehin, to explain allegations surrounding the collection of various fees from insurance companies under the ongoing recapitalisation exercise, including an alleged one per cent charge on fresh capital raised by operators.
The invitation followed a petition by NICON Insurance Plc and the Nigeria Reinsurance Corporation to President Bola Ahmed Tinubu, in which the companies alleged irregularities in the implementation of the recapitalisation programme by the National Insurance Commission.
The petitioners alleged that insurance companies had been subjected to a series of payments, including a one per cent recapitalisation fee, verification charges and additional registration fees, which they claimed amounted to more than N30bn across the industry.
They questioned the legal basis for the charges, arguing that NAICOM, being a Federal Government agency, could not impose such financial obligations on insurance companies without the appropriate approval of its supervising ministry, the Federal Ministry of Finance.
The EFCC invitation, according to sources familiar with the development, is expected to provide the insurance regulator an opportunity to explain the basis for the various charges and the circumstances surrounding the payments allegedly demanded from insurance companies during the recapitalisation exercise.
NICON Insurance and Nigeria Re, in an open letter dated August 5, 2026, which was subsequently published in several national newspapers, accused the Commissioner for Insurance of making what they described as unlawful financial demands on insurance companies.
The companies specifically alleged that NAICOM demanded one per cent of the new capital being raised by insurance firms, putting the amount involved in their case at about N500m.
They described the demand as illegal and unconstitutional, insisting that the money constituted shareholders' funds and should not be transferred to the regulator.
The petitioners also alleged that they were required to pay N180m as a “recapitalisation fee” for the verification of their recapitalisation exercise.
According to the companies, they were informed that the money would be used to engage consultants to verify their recapitalisation, but they claimed that they had not seen any consultant engaged for that purpose.
NICON and Nigeria Re further maintained that they had fulfilled the recapitalisation requirements and backed their position with documents purportedly issued by the Central Bank of Nigeria.
The companies stated that NICON Insurance had deposited N2.5bn as its statutory deposit with the CBN, while Nigeria Re had a statutory deposit balance of N3.5bn.
They also disclosed that additional capital of N20bn and N30bn had been injected into NICON and Nigeria Re respectively through deposits for shares.
The petitioners questioned the rationale for further financial demands by NAICOM, arguing that the capital injections and statutory deposits constituted evidence of compliance with the recapitalisation requirements.
They alleged that the regulator's actions could undermine the insurance sector and frustrate the economic reforms of the Tinubu administration.
The companies consequently urged the President to direct the Federal Ministry of Finance or any other appropriate government agency to investigate the allegations and the handling of the recapitalisation exercise.
They also requested the refund of monies allegedly paid by insurance companies as “recapitalisation fees” and the return of the one per cent shareholders' funds allegedly demanded by the regulator.
The petitioners further urged the President to examine Section 16(3) of the new Insurance Act, which they said provides for an equivalent of 10 per cent of the minimum capital of existing insurance companies to be deposited with the CBN.
They argued that the alleged one per cent demand by NAICOM was inconsistent with the provisions of the law.
The companies also drew a comparison between the insurance industry recapitalisation and the banking sector exercise, arguing that banks were not subjected to similar demands during the banking recapitalisation programme.
They called for a full-scale investigation into the insurance recapitalisation exercise, saying such an inquiry would help to “clean the system” and remove what they described as “bad actors.”
The petitioners said they were prepared to face the law if any of the allegations contained in their petition were found to be false.
Meanwhile, additional allegations concerning the spending of NAICOM were raised by sources within the commission, including a claim that more than N3bn had allegedly been spent on executive vehicles.
The claim could not be independently verified as of the time of filing this report.
The EFCC's inquiry is expected to establish the legal basis for the various fees, determine whether the required approvals were obtained and examine how the funds allegedly collected from insurance companies were utilised.
The investigation could also determine whether any financial impropriety occurred in the implementation of the recapitalisation exercise and whether the disputed charges were authorised under the relevant laws and regulations governing the insurance industry.
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