NICON Insurance Plc and Nigeria Reinsurance Corporation have asked the Economic and Financial Crimes Commission (EFCC) to investigate alleged financial irregularities arising from the National Insurance Commission’s (NAICOM) recent recapitalisation exercise.
The companies made the request in a joint statement issued in response to a September 10, 2026 rejoinder by NAICOM concerning 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 the insurance regulator and the companies it regulates.
They alleged that NAICOM’s rejoinder failed to address specific issues raised in their petition, particularly the alleged demand for one per cent of shareholders’ funds, the management of funds collected and other 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 (NIIRA) 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, saying the allegation raised financial accountability questions requiring independent investigation.
They 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.
The companies argued that the demand was inconsistent with Section 16(3) of 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 N180 million for verification consultants, claiming that NAICOM demanded and received a combined N180 million from the two companies for verification exercises.
They, however, alleged that no external consultants were deployed and that NAICOM staff instead 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 central issue was whether NAICOM’s actions during the recapitalisation exercise were authorised by law, arguing that the commission could not simultaneously act as 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 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 said they expected substantive answers to the issues raised in their petition rather than what they described as diversion. “We expect answers, not diversion,” they stated.
