Recapitalisation: NAICOM dismisses N100bn fraud allegation, denies EFCC detention
September 11, 2026 1:59 am
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).
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.
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.
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.
NAICOM specifically denied that its Commissioner for Insurance or any of its Directors had been indicted, charged or found culpable of fraudulent activity.
According to the regulator, the allegations contained in the report were entirely unsubstantiated, speculative, and misleading.
NAICOM, however, confirmed that the EFCC had contacted the commission over allegations circulated in the media.
The regulator said it supplied the anti-graft agency with the information and explanations requested.
It maintained that an agency’s request for information should not be interpreted as evidence that the recipient had committed an offence.
NAICOM said it had not received any finding from the EFCC establishing wrongdoing in relation to the issues on which the agency sought clarification.
“At no time did the Commission receive any finding of wrongdoing,” NAICOM said.
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.
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.
NAICOM said the recapitalisation programme was implemented in accordance with NIIRA 2025 and the regulatory guidelines issued under the law.
It said the exercise was designed to strengthen the solvency and financial capacity of operators, protect policyholders and enhance stability in the insurance market.
The matter is currently in court. The commission also rejected arguments that a court order had prevented it from carrying out its statutory responsibilities.
“NAICOM remains fully empowered and obligated to discharge its functions in accordance with extant legislation and regulatory requirements,” it said.
NICON Insurance and Nigeria Re have challenged several aspects of NAICOM’s recapitalisation requirements.
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.
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).
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.
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.
NAICOM has demanded the immediate withdrawal and correction of the publication containing the fraud allegations.
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