NAICOM Faces Legal Challenge from NICON and Nigeria Re

The National Insurance Commission (NAICOM) is currently embroiled in a dispute with NICON Insurance Limited and Nigeria Reinsurance Limited, both linked to businessman Jimoh Ibrahim, regarding the recent insurance sector recapitalisation exercise. This exercise has seen 50 insurance companies meet new minimum capital requirements, but NICON and Nigeria Re have been excluded from NAICOM's list of the first 43 compliant companies.

Consequently, their operating licences have been cancelled, and they are under regulatory action. The companies are challenging NAICOM's directive to transfer recapitalisation funds into an escrow account with the Central Bank of Nigeria (CBN) in court.

On July 27, 2026, they petitioned NAICOM over what they termed unlawful fees and regulatory demands stemming from the Nigerian Insurance Industry Reform Act (NIIRA) 2025. Jimoh Ibrahim previously argued against raising the minimum capital requirement for reinsurance companies during a Senate session in December 2024, warning that it could jeopardize local reinsurance capacity.