Kari Urges Rejection of Regulatory Concessions for Insurers

On Wednesday, Alhaji Mohammed Kari, former Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), urged Mr. Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy, to reject calls for regulatory concessions from insurance companies following the recapitalisation exercise. Kari stated that granting such concessions would be counterproductive, especially for companies with a history of non-compliance.

He asserted that strict enforcement of regulatory requirements would not threaten Nigeria's financial system or economy. NAICOM had mandated insurance companies to transfer their recapitalisation funds into an escrow account with the Central Bank of Nigeria (CBN), a directive being legally challenged by NICON Insurance and Nigeria Reinsurance Corporation.

Kari noted that these firms are no longer significant players in the market and their failure would not pose systemic risks. He argued that political intervention to shield non-compliant firms undermines market equilibrium and creates unfair advantages.