Recapitalisation: NAICOM dismisses N100bn fraud allegation, denies EFCC detention

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The National Insurance Commission has dismissed allegations of a N100bn fraud in Nigeria’s insurance recapitalisation exercise, rejecting claims that its Commissioner for Insurance and a Director were detained by the Economic and Financial Crimes Commission (EFCC).

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The regulator described the allegations as false and malicious, saying they were part of an attempt to discredit its officials and undermine the recapitalisation programme.

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NAICOM was reacting to a 9 September, 2026 report alleging “N100 Billion Fraudulent Insurance Recapitalization” and claiming that its Commissioner for Insurance and a Director had been detained by the EFCC and subsequently released on bail.

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In a statement signed by its management, NAICOM said the publication was allegedly sponsored, noting that the report was “false, misleading, malicious, and a deliberate misrepresentation of facts” intended to damage the reputation of the regulator and erode public confidence in the insurance industry.

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NAICOM specifically denied that its Commissioner for Insurance or any of its Directors had been indicted, charged or found culpable of fraudulent activity.

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According to the regulator, the allegations contained in the report were entirely unsubstantiated, speculative, and misleading.

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NAICOM, however, confirmed that the EFCC had contacted the commission over allegations circulated in the media.

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The regulator said it supplied the anti-graft agency with the information and explanations requested.

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It maintained that an agency’s request for information should not be interpreted as evidence that the recipient had committed an offence.

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NAICOM said it had not received any finding from the EFCC establishing wrongdoing in relation to the issues on which the agency sought clarification.

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“At no time did the Commission receive any finding of wrongdoing,” NAICOM said.

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The allegations come against the backdrop of a dispute between NAICOM and NICON Insurance and Nigeria Re over the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

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The law introduced higher minimum capital requirements for insurance and reinsurance companies as part of efforts to strengthen the industry’s balance sheets and improve their ability to absorb risks.

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NAICOM said the recapitalisation programme was implemented in accordance with NIIRA 2025 and the regulatory guidelines issued under the law.

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It said the exercise was designed to strengthen the solvency and financial capacity of operators, protect policyholders and enhance stability in the insurance market.

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The matter is currently in court. The commission also rejected arguments that a court order had prevented it from carrying out its statutory responsibilities.

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“NAICOM remains fully empowered and obligated to discharge its functions in accordance with extant legislation and regulatory requirements,” it said.

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NICON Insurance and Nigeria Re have challenged several aspects of NAICOM’s recapitalisation requirements.

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Among the disputed provisions is a one percent capital injection fee, alongside processing and verification charges contained in Appendix 2 of NAICOM’s Minimum Capital Requirement Guidelines.

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The companies have also challenged NAICOM’s directive requiring existing operators to transfer their capital injection funds into an escrow account with the Central Bank of Nigeria (CBN).

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In a petition to the Ministry of Finance, they argued that the escrow requirement was inconsistent with Section 16(3) of NIIRA 2025, which provides for a 10 percent statutory deposit with the CBN.

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The companies said they met the 31 July, 2026 recapitalisation deadline by injecting N20bn into NICON Insurance and N30bn into Nigeria Re through Mudaraba Term Deposit accounts with Lotus Bank.

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NAICOM has demanded the immediate withdrawal and correction of the publication containing the fraud allegations.

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