The Federal Ministry of Finance has directed the National Insurance Commission to suspend the enforcement of disputed recapitalisation fees and directives requiring two state-owned insurance companies to transfer their entire fresh capital into an escrow account with the Central Bank of Nigeria.
The ministry also demanded a detailed response and legal justification from NAICOM over the assessment of N305m against NICON Insurance Limited and N375m against the Nigeria Reinsurance Corporation as part of the ongoing recapitalisation exercise.
The development was contained in a letter dated August 6, 2026, signed by the Permanent Secretary, Finance, Raymond Omachi, on behalf of the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and obtained by The PUNCH on Monday.
The letter, addressed to the Commissioner for Insurance, NAICOM, followed a petition dated July 27, 2026, submitted by NICON and Nigeria Re over the implementation of the Nigerian Insurance Industry Reform Act, 2025.
At the heart of the dispute are charges which the two companies described as illegal, as well as a directive allegedly requiring them to transfer their entire recapitalisation funds into an escrow account with the CBN.
