Insurance recapitalisation: Oyedele queries NAICOM over processing fee, payment into escrow account
By Emma Ujah, Abuja Bureau Chief
ABUJA—Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele has raised concerns with the National Insurance Commission (NAICOM) regarding its imposition of a 1% Capital Injection Fee and additional verification fees as part of the ongoing insurance sector recapitalization exercise.
The inquiry was prompted by a petition from NICON Insurance Limited and Nigeria Reinsurance Corporation, which accused NAICOM of levying charges on insurance companies that exceed statutory provisions.
In a memo dated August 6, and signed by Permanent Secretary of Finance Raymond Omachi, the Ministry directed NAICOM to provide a detailed response and legal justification regarding the issues highlighted in the petition. The Commission was also instructed to transfer all capital injection funds into an escrow account at the Central Bank of Nigeria (CBN) and to suspend the enforcement of the contested fees against NICON and Nigeria Re until the petition is resolved.
The petitioners specifically challenged the 1% Capital Injection Fee and additional Processing and Verification Fees mandated in NAICOM’s Minimum Capital Requirement Guidelines, which amount to N305 million for NICON and N375 million for Nigeria Re. They argued that existing regulations only require a 10% statutory deposit, as outlined in Section 16 (3) of the Nigeria Insurance Industry Reform Act (NIIRA) 2025.
Both companies asserted that they have met the statutory deadline of July 31, 2026, by injecting N20 billion and N30 billion, respectively, into Mudaba Term Deposit Accounts at Lotus Bank Ltd, surpassing their adjusted requirements of N16 billion and N28 billion.
Furthermore, they stated they had deposited N2.5 billion with the CBN in accordance with NIIRA 2025 and made initial fee payments of N80 million and N75 million.
However, NAICOM responded, stating that all fee requirements have been in place since last year and that the 43 companies that have completed recapitalization, along with eight awaiting verification, have complied with these guidelines.
