NICON Insurance Plc and Nigeria Reinsurance Corporation have asked the Economic and Financial Crimes Commission (EFCC) to investigate alleged financial irregularities linked to the National Insurance Commission’s (NAICOM) recapitalisation exercise.
In a joint statement responding to NAICOM’s rejoinder, NICON and Nigeria Re alleged that the commission failed to address key questions raised in their petition, particularly the collection and management of funds from insurance companies.
They alleged that NAICOM demanded one per cent of shareholders’ funds from insurers without any provision in the Nigerian Insurance Industry Reform Act 2025 authorising the payment.
The companies are demanding that NAICOM explain the legal basis for the levy, account for the funds collected and disclose where the money was ultimately paid.
They 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.
NICON and Nigeria Re said the allegation raised issues that required an independent investigation by the EFCC.
The companies also challenged an alleged NAICOM directive requiring 100 per cent of capital injections to be transferred to the Central Bank of Nigeria during the recapitalisation exercise.
They argued that the requirement was inconsistent with Section 16(3) of the Nigerian Insurance Industry Reform Act 2025, which, according to them, requires existing insurers to deposit only 10 per cent of their capital injection.
Another issue raised was the alleged collection of N180 million from the two companies for verification consultants.
NICON and Nigeria Re claimed that although the money was demanded for external consultants, no such consultants were deployed and NAICOM officials instead conducted the verification exercise.
“These are straightforward questions of law and accountability. They cannot be answered through newspaper rejoinders or rhetoric,” the companies said.
They also rejected what they described as NAICOM’s attempt to frame the matter as a civil dispute, insisting that the allegations concern whether public regulatory powers and funds were handled in accordance with the law.
“NAICOM is a regulator, not the law. It is itself subject to the law,” they stated.
The companies said they had fully recapitalised in line with the NIIRA 2025 and would continue to defend the interests of their shareholders and policyholders through legal and constitutional channels.
They added that the matter was already before the EFCC and the courts, expressing confidence that the allegations would be independently examined.
“We expect answers—not diversion,” NICON and Nigeria Re said.
It was earlier reported that NAICOM announced the end of the verification exercise involving insurance companies across the country whole also insisting that matters during exercise were conducted according to the law.
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The Federal Government had also earlier ordered an investigation following the issues raised by both companies.
With the exercise concluded and activities on the sector going on as usual, the days ahead will determine what happens next on the issues raised by both companies in their joint petition.
