The National Insurance Commission (NAICOM) has accused the promoters of NICON Insurance Plc and Nigeria Reinsurance Corporation of sponsoring what it described as a false and malicious publication alleging fraud in the recently concluded insurance industry recapitalisation exercise.
The commission made the allegation in a statement titled “Rejoinder to a False and Misleading Publication on the Recently Concluded Recapitalization Exercise,” signed by its management.
The development comes amid an ongoing legal dispute between the two insurance companies and NAICOM over the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which introduced higher minimum capital requirements for insurance and reinsurance companies.
NAICOM said its attention was drawn to a September 9, 2026 publication titled “100 Billion Fraudulent Insurance Recapitalization: EFCC Detains NAICOM Director and Commissioner, Both on Bail.”
The commission alleged that the report was being sponsored by the promoters of NICON Insurance and Nigeria Re, both of which are currently under liquidation.
NAICOM described the report as false, misleading and malicious, accusing its publishers of deliberately misrepresenting facts in a manner capable of undermining the commission and its officials.
The regulator also denied that its Commissioner for Insurance or any of its directors had been indicted, charged, or found culpable in connection with fraudulent activities.
NAICOM said the insurance industry recapitalisation exercise was conducted in accordance with the provisions of NIIRA 2025 and guidelines issued by the commission.
It said the exercise was part of its statutory responsibility to strengthen the financial capacity, solvency and resilience of insurance institutions while protecting policyholders and maintaining stability within the sector.
The commission also rejected suggestions that a court order referenced by the promoters of NICON and Nigeria Re had prevented it from exercising its statutory responsibilities.
The regulator further disclosed that the Economic and Financial Crimes Commission (EFCC) had requested information and explanations from NAICOM regarding allegations circulated by the same promoters in sections of the media.
According to the commission, it responded to the EFCC with the relevant information and clarifications requested.
NAICOM stressed that responding to a request for information from a law enforcement agency was an administrative process and should not be interpreted as evidence of wrongdoing, indictment, detention or culpability.
The commission said it would not allow what it described as malicious attempts to portray unverified allegations as established facts.
NAICOM called on the publishers of the report and those responsible for its dissemination to immediately retract and correct the publication.
The commission also urged journalists and media organisations to adhere to the principles of accuracy, fairness, balance and verification, particularly when reporting on regulatory institutions and issues that could affect confidence in critical sectors of the economy.
It advised stakeholders, insurers, investors and members of the public to disregard the publication and rely on official communications from NAICOM and other competent authorities regarding the regulation of the insurance industry.
The latest development is part of the broader dispute surrounding the implementation of NIIRA 2025, which raised the minimum capital requirements for insurance and reinsurance companies operating in Nigeria.
The companies maintained that they met the July 31, 2026 recapitalisation deadline by injecting N20 billion into NICON Insurance and N30 billion into Nigeria Re through Mudaraba Term Deposit accounts with Lotus Bank.
They argued that the capital injections exceeded their adjusted capital requirements of N16 billion for NICON Insurance and N28 billion for Nigeria Re.
The companies further stated that they deposited N2.5 billion and N3.5 billion respectively with the CBN in accordance with Section 16(3) of NIIRA 2025.
Meanwhile, a NAICOM source who spoke to Nairametrics on condition of anonymity had earlier said the companies’ position was unlikely to succeed.
The source recalled that Senator Jimoh Ibrahim had opposed the proposed increase in the minimum capital requirement for reinsurance companies during the Senate’s consideration of the Nigerian Insurance Industry Reform Bill in December 2024.
The source characterised the dispute as one involving operators of a regulated business who were unwilling to comply with the requirements set by their regulator.
