Finance Ministry Queries NAICOM Over Recapitalisation Fees

The Federal Ministry of Finance has directed the National Insurance Commission to provide a legal justification for fees and directives it imposed on two insurance companies during the industry's ongoing recapitalisation. The ministry also ordered a suspension of enforcement against the firms pending the outcome of their petition.

The query, dated August 6, 2026, followed a petition submitted to President Bola Tinubu by NICON Insurance Limited and Nigeria Reinsurance Corporation. The companies alleged that NAICOM unlawfully demanded a one per cent capital injection fee and other charges, and issued a directive requiring them to transfer their entire recapitalisation funds into a Central Bank of Nigeria escrow account.

According to the ministry's letter, the disputed charges included a one per cent shareholders' fund charge, processing fees, and verification fees. These amounted to 305 million for NICON Insurance and 375 million for Nigeria Reinsurance. The petitioners also challenged an additional 180 million capitalisation charge they described as questionable.

The companies argued that NAICOM's directive to transfer all capital injection funds into a CBN escrow account...