Petition against NAICOM to EFCC borders on criminal allegations, not civil matters says NICON, Nigeria Re

 

NICON Insurance Plc and Nigeria Reinsurance Corporation have called on the Economic and Financial Crimes Commission to investigate alleged financial irregularities arising from the National Insurance Commission’s recent recapitalisation exercise.

The companies made the call in a joint statement issued in response to a September 10, 2026 rejoinder by NAICOM on their petition before the EFCC.

NICON and Nigeria Re said their petition bordered on alleged criminal conduct and financial accountability, rather than a civil disagreement between an insurance regulator and the companies it regulates.

They alleged that NAICOM’s rejoinder failed to address specific issues raised in their petition, particularly the demand for one per cent of shareholders’ funds, the management of funds collected and requirements imposed on insurers during the recapitalisation exercise.

The companies alleged that NAICOM demanded one per cent of shareholders’ funds from insurance companies without any provision in the Nigerian Insurance Industry Reform Act 2025 authorising such payment.

They therefore asked the commission to explain the legal basis for the demand, account for the funds collected and disclose their ultimate destination.

NICON and Nigeria Re further alleged that the one per cent payments were made into an account operated by NAICOM but were not remitted to the Federal Government’s Treasury Single Account.

They said the allegation raised issues of financial accountability that required an independent investigation.

The companies also alleged that NAICOM demanded the transfer of 100 per cent of capital injections to the Central Bank of Nigeria as part of the recapitalisation exercise.

They argued that the demand was inconsistent with Section 16(3) of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which they said requires existing insurance companies to deposit only 10 per cent of the capital injection.

NICON and Nigeria Re also questioned the alleged collection of N180m for verification consultants.

They alleged that NAICOM demanded and received a combined N180m from the two companies for consultants to conduct verification exercises.

However, they claimed that no external consultants were deployed, alleging instead that NAICOM staff carried out the verification.

“These are straightforward questions of law and accountability. They cannot be answered through newspaper rejoinders or rhetoric,” the companies said.

They maintained that the key issue was whether the actions taken by NAICOM during the recapitalisation exercise were authorised by law.

The companies also argued that NAICOM could not simultaneously act as the regulator, collector of disputed funds and final judge of the legality of its own demands.

“NAICOM is a regulator, not the law. It is itself subject to the law,” they stated.

NICON and Nigeria Re said they had fully recapitalised in accordance with the NIIRA 2025 and would continue to defend the interests of their companies, shareholders and policyholders through appropriate legal and constitutional channels.

They said the matter had already been brought before the EFCC and the courts, expressing confidence that the relevant authorities would independently examine the allegations and determine whether the actions complained of were lawful.

The companies added that they expected answers to the issues raised in their petition rather than what they described as diversion.

“We expect answers-not diversion,” they stated.