Finance Ministry Halts NAICOM Recapitalisation Fees

The Ministry of Finance directed the National Insurance Commission (NAICOM) to suspend the enforcement of disputed recapitalisation fees and escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation (Nigeria Re). This directive, issued in a letter dated August 6, 2026, and signed by Permanent Secretary Raymond Omachi, follows a petition from the two firms dated July 27.

They alleged that NAICOM demanded a one per cent capital injection fee, totaling N305 million for NICON and N375 million for Nigeria Re, alongside other fees. The firms claimed that NAICOM's directive to transfer capital injection funds into an escrow account with the Central Bank of Nigeria (CBN) was unconstitutional.

Both companies asserted they had met the recapitalisation deadline of July 31, 2026, with NICON injecting N20 billion and Nigeria Re N30 billion into Mudaraba Term Deposit accounts with Lotus Bank, exceeding their adjusted capital requirements. The ministry requested NAICOM to provide a detailed response and legal justification for the disputed charges.