FG Queries NAICOM, Demands Response on Alleged Demand of N500 Million Shareholders’ Funds from NICON Insurance, Nigeria Reinsurance
• Orders Commission to halt enforcement of contested processing fees, 1% capital injection fee, full-capital escrow transfer directives
Ndubuisi Francis and James Emejo in Abuja
The federal government has queried the National Insurance Commission (NAICOM) to provide a detailed response and legal justification regarding its alleged demand for a 1 per cent capital injection fee alongside additional processing and verification fees pursuant to Appendix 2 of the Commission’s Minimum Capital Requirement Guidelines, amounting to N305 million for Nigeria Insurance Limited (NICON), and N375 million for Nigeria Reinsurance Corporation (Nigeria Re), in the ongoing recapitalisation of the insurance industry.
In a well-publicised petition addressed to President Bola Ahmed Tinubu, NICON Insurance and Nigeria Reinsurance claimed that NAICOM had unlawfully demanded N500 million 1 per cent shareholders’ fund and an illegal transfer of N50 billion as well as the payment of N180 million recapitalisation fee to the Commission – the national insurance regulator.
