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 byThe PUNCHon 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.The Finance Ministry said the petitioners had raised concerns over NAICOM’s assessment and demand for a one per cent capital injection fee, alongside processing and verification charges under Appendix 2 of the commission’s Minimum Capital Requirement Guidelines.According to the letter, the combined assessment amounted to N305m for NICON and N375m for Nigeria Re.The companies also challenged what they described as a directive requiring existing and operational insurance firms to transfer their entire capital injection funds into an escrow account at the CBN, arguing that this exceeded the 10 per cent statutory deposit requirement provided under Section 16(3) of NIIRA 2025.The ministry, in the letter, said it had received the petition and was seeking NAICOM’s position on the issues raised.“The Ministry has received a petition dated 27th July, 2026 from NICON Insurance Limited (NICON) and Nigeria Reinsurance Corporation (Nig Re) regarding the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act (NIIRA), 2025.“The petitioners have raised notable grievances against the Commission regarding:“i. The assessment and demand for a 1% Capital Injection Fee alongside additional processing and verification fees pursuant to Appendix 2 of the Commission’s Minimum Capital Requirement Guidelines, amounting to N305 million for NICON and N375 million for Nig Re; and“ii. Directives requiring existing, operational insurance entities to transfer their entire capital injection funds into an escrow account at the Central Bank of Nigeria (CBN), as against the 10% statutory deposit requirement prescribed under Section 16(3) of NIIRA 2025,” the letter read.The companies maintained that they had met the statutory deadline for recapitalisation and had injected amounts above their adjusted capital requirements.NICON, according to the ministry, injected N20bn into a Mudaraba Term Deposit account with Lotus Bank Limited, compared with its adjusted requirement of N16bn.Nigeria Re, meanwhile, injected N30bn into a similar Mudaraba Term Deposit account, exceeding its adjusted requirement of N28bn. The companies also told the ministry that they had made statutory deposits with the CBN in line with Section 16(3) of the new insurance law.NICON deposited N2.5bn with the CBN, while Nigeria Re deposited N3.5bn. The petitioners further informed the ministry that they had already made initial fee payments of N80m and N75m, respectively.Related News20 varsities get ASUU nod to begin strikeN752bn Abuja-Kano highway to be completed by November – UmahiFG, NBA, UNICEF unveil free legal services for childrenThe ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. 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 byThe PUNCHon 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.The Finance Ministry said the petitioners had raised concerns over NAICOM’s assessment and demand for a one per cent capital injection fee, alongside processing and verification charges under Appendix 2 of the commission’s Minimum Capital Requirement Guidelines.According to the letter, the combined assessment amounted to N305m for NICON and N375m for Nigeria Re.The companies also challenged what they described as a directive requiring existing and operational insurance firms to transfer their entire capital injection funds into an escrow account at the CBN, arguing that this exceeded the 10 per cent statutory deposit requirement provided under Section 16(3) of NIIRA 2025.The ministry, in the letter, said it had received the petition and was seeking NAICOM’s position on the issues raised.“The Ministry has received a petition dated 27th July, 2026 from NICON Insurance Limited (NICON) and Nigeria Reinsurance Corporation (Nig Re) regarding the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act (NIIRA), 2025.“The petitioners have raised notable grievances against the Commission regarding:“i. The assessment and demand for a 1% Capital Injection Fee alongside additional processing and verification fees pursuant to Appendix 2 of the Commission’s Minimum Capital Requirement Guidelines, amounting to N305 million for NICON and N375 million for Nig Re; and“ii. Directives requiring existing, operational insurance entities to transfer their entire capital injection funds into an escrow account at the Central Bank of Nigeria (CBN), as against the 10% statutory deposit requirement prescribed under Section 16(3) of NIIRA 2025,” the letter read.The companies maintained that they had met the statutory deadline for recapitalisation and had injected amounts above their adjusted capital requirements.NICON, according to the ministry, injected N20bn into a Mudaraba Term Deposit account with Lotus Bank Limited, compared with its adjusted requirement of N16bn.Nigeria Re, meanwhile, injected N30bn into a similar Mudaraba Term Deposit account, exceeding its adjusted requirement of N28bn. The companies also told the ministry that they had made statutory deposits with the CBN in line with Section 16(3) of the new insurance law.NICON deposited N2.5bn with the CBN, while Nigeria Re deposited N3.5bn. The petitioners further informed the ministry that they had already made initial fee payments of N80m and N75m, respectively.Related News20 varsities get ASUU nod to begin strikeN752bn Abuja-Kano highway to be completed by November – UmahiFG, NBA, UNICEF unveil free legal services for childrenThe ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. 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 byThe PUNCHon 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.The Finance Ministry said the petitioners had raised concerns over NAICOM’s assessment and demand for a one per cent capital injection fee, alongside processing and verification charges under Appendix 2 of the commission’s Minimum Capital Requirement Guidelines.According to the letter, the combined assessment amounted to N305m for NICON and N375m for Nigeria Re.The companies also challenged what they described as a directive requiring existing and operational insurance firms to transfer their entire capital injection funds into an escrow account at the CBN, arguing that this exceeded the 10 per cent statutory deposit requirement provided under Section 16(3) of NIIRA 2025.The ministry, in the letter, said it had received the petition and was seeking NAICOM’s position on the issues raised.“The Ministry has received a petition dated 27th July, 2026 from NICON Insurance Limited (NICON) and Nigeria Reinsurance Corporation (Nig Re) regarding the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act (NIIRA), 2025.“The petitioners have raised notable grievances against the Commission regarding:“i. The assessment and demand for a 1% Capital Injection Fee alongside additional processing and verification fees pursuant to Appendix 2 of the Commission’s Minimum Capital Requirement Guidelines, amounting to N305 million for NICON and N375 million for Nig Re; and“ii. Directives requiring existing, operational insurance entities to transfer their entire capital injection funds into an escrow account at the Central Bank of Nigeria (CBN), as against the 10% statutory deposit requirement prescribed under Section 16(3) of NIIRA 2025,” the letter read.The companies maintained that they had met the statutory deadline for recapitalisation and had injected amounts above their adjusted capital requirements.NICON, according to the ministry, injected N20bn into a Mudaraba Term Deposit account with Lotus Bank Limited, compared with its adjusted requirement of N16bn.Nigeria Re, meanwhile, injected N30bn into a similar Mudaraba Term Deposit account, exceeding its adjusted requirement of N28bn. The companies also told the ministry that they had made statutory deposits with the CBN in line with Section 16(3) of the new insurance law.NICON deposited N2.5bn with the CBN, while Nigeria Re deposited N3.5bn. The petitioners further informed the ministry that they had already made initial fee payments of N80m and N75m, respectively.Related News20 varsities get ASUU nod to begin strikeN752bn Abuja-Kano highway to be completed by November – UmahiFG, NBA, UNICEF unveil free legal services for childrenThe ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. 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.The Finance Ministry said the petitioners had raised concerns over NAICOM’s assessment and demand for a one per cent capital injection fee, alongside processing and verification charges under Appendix 2 of the commission’s Minimum Capital Requirement Guidelines.According to the letter, the combined assessment amounted to N305m for NICON and N375m for Nigeria Re.The companies also challenged what they described as a directive requiring existing and operational insurance firms to transfer their entire capital injection funds into an escrow account at the CBN, arguing that this exceeded the 10 per cent statutory deposit requirement provided under Section 16(3) of NIIRA 2025.The ministry, in the letter, said it had received the petition and was seeking NAICOM’s position on the issues raised.“The Ministry has received a petition dated 27th July, 2026 from NICON Insurance Limited (NICON) and Nigeria Reinsurance Corporation (Nig Re) regarding the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act (NIIRA), 2025.“The petitioners have raised notable grievances against the Commission regarding:“i. The assessment and demand for a 1% Capital Injection Fee alongside additional processing and verification fees pursuant to Appendix 2 of the Commission’s Minimum Capital Requirement Guidelines, amounting to N305 million for NICON and N375 million for Nig Re; and“ii. Directives requiring existing, operational insurance entities to transfer their entire capital injection funds into an escrow account at the Central Bank of Nigeria (CBN), as against the 10% statutory deposit requirement prescribed under Section 16(3) of NIIRA 2025,” the letter read.The companies maintained that they had met the statutory deadline for recapitalisation and had injected amounts above their adjusted capital requirements.NICON, according to the ministry, injected N20bn into a Mudaraba Term Deposit account with Lotus Bank Limited, compared with its adjusted requirement of N16bn.Nigeria Re, meanwhile, injected N30bn into a similar Mudaraba Term Deposit account, exceeding its adjusted requirement of N28bn. The companies also told the ministry that they had made statutory deposits with the CBN in line with Section 16(3) of the new insurance law.NICON deposited N2.5bn with the CBN, while Nigeria Re deposited N3.5bn. The petitioners further informed the ministry that they had already made initial fee payments of N80m and N75m, respectively.Related News20 varsities get ASUU nod to begin strikeN752bn Abuja-Kano highway to be completed by November – UmahiFG, NBA, UNICEF unveil free legal services for childrenThe ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. 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.The Finance Ministry said the petitioners had raised concerns over NAICOM’s assessment and demand for a one per cent capital injection fee, alongside processing and verification charges under Appendix 2 of the commission’s Minimum Capital Requirement Guidelines.According to the letter, the combined assessment amounted to N305m for NICON and N375m for Nigeria Re.The companies also challenged what they described as a directive requiring existing and operational insurance firms to transfer their entire capital injection funds into an escrow account at the CBN, arguing that this exceeded the 10 per cent statutory deposit requirement provided under Section 16(3) of NIIRA 2025.The ministry, in the letter, said it had received the petition and was seeking NAICOM’s position on the issues raised.“The Ministry has received a petition dated 27th July, 2026 from NICON Insurance Limited (NICON) and Nigeria Reinsurance Corporation (Nig Re) regarding the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act (NIIRA), 2025.“The petitioners have raised notable grievances against the Commission regarding:“i. The assessment and demand for a 1% Capital Injection Fee alongside additional processing and verification fees pursuant to Appendix 2 of the Commission’s Minimum Capital Requirement Guidelines, amounting to N305 million for NICON and N375 million for Nig Re; and“ii. Directives requiring existing, operational insurance entities to transfer their entire capital injection funds into an escrow account at the Central Bank of Nigeria (CBN), as against the 10% statutory deposit requirement prescribed under Section 16(3) of NIIRA 2025,” the letter read.The companies maintained that they had met the statutory deadline for recapitalisation and had injected amounts above their adjusted capital requirements.NICON, according to the ministry, injected N20bn into a Mudaraba Term Deposit account with Lotus Bank Limited, compared with its adjusted requirement of N16bn.Nigeria Re, meanwhile, injected N30bn into a similar Mudaraba Term Deposit account, exceeding its adjusted requirement of N28bn. The companies also told the ministry that they had made statutory deposits with the CBN in line with Section 16(3) of the new insurance law.NICON deposited N2.5bn with the CBN, while Nigeria Re deposited N3.5bn. The petitioners further informed the ministry that they had already made initial fee payments of N80m and N75m, respectively.Related News20 varsities get ASUU nod to begin strikeN752bn Abuja-Kano highway to be completed by November – UmahiFG, NBA, UNICEF unveil free legal services for childrenThe ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. The Finance Ministry said the petitioners had raised concerns over NAICOM’s assessment and demand for a one per cent capital injection fee, alongside processing and verification charges under Appendix 2 of the commission’s Minimum Capital Requirement Guidelines.According to the letter, the combined assessment amounted to N305m for NICON and N375m for Nigeria Re.The companies also challenged what they described as a directive requiring existing and operational insurance firms to transfer their entire capital injection funds into an escrow account at the CBN, arguing that this exceeded the 10 per cent statutory deposit requirement provided under Section 16(3) of NIIRA 2025.The ministry, in the letter, said it had received the petition and was seeking NAICOM’s position on the issues raised.“The Ministry has received a petition dated 27th July, 2026 from NICON Insurance Limited (NICON) and Nigeria Reinsurance Corporation (Nig Re) regarding the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act (NIIRA), 2025.“The petitioners have raised notable grievances against the Commission regarding:“i. The assessment and demand for a 1% Capital Injection Fee alongside additional processing and verification fees pursuant to Appendix 2 of the Commission’s Minimum Capital Requirement Guidelines, amounting to N305 million for NICON and N375 million for Nig Re; and“ii. Directives requiring existing, operational insurance entities to transfer their entire capital injection funds into an escrow account at the Central Bank of Nigeria (CBN), as against the 10% statutory deposit requirement prescribed under Section 16(3) of NIIRA 2025,” the letter read.The companies maintained that they had met the statutory deadline for recapitalisation and had injected amounts above their adjusted capital requirements.NICON, according to the ministry, injected N20bn into a Mudaraba Term Deposit account with Lotus Bank Limited, compared with its adjusted requirement of N16bn.Nigeria Re, meanwhile, injected N30bn into a similar Mudaraba Term Deposit account, exceeding its adjusted requirement of N28bn. The companies also told the ministry that they had made statutory deposits with the CBN in line with Section 16(3) of the new insurance law.NICON deposited N2.5bn with the CBN, while Nigeria Re deposited N3.5bn. The petitioners further informed the ministry that they had already made initial fee payments of N80m and N75m, respectively.Related News20 varsities get ASUU nod to begin strikeN752bn Abuja-Kano highway to be completed by November – UmahiFG, NBA, UNICEF unveil free legal services for childrenThe ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. According to the letter, the combined assessment amounted to N305m for NICON and N375m for Nigeria Re.The companies also challenged what they described as a directive requiring existing and operational insurance firms to transfer their entire capital injection funds into an escrow account at the CBN, arguing that this exceeded the 10 per cent statutory deposit requirement provided under Section 16(3) of NIIRA 2025.The ministry, in the letter, said it had received the petition and was seeking NAICOM’s position on the issues raised.“The Ministry has received a petition dated 27th July, 2026 from NICON Insurance Limited (NICON) and Nigeria Reinsurance Corporation (Nig Re) regarding the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act (NIIRA), 2025.“The petitioners have raised notable grievances against the Commission regarding:“i. The assessment and demand for a 1% Capital Injection Fee alongside additional processing and verification fees pursuant to Appendix 2 of the Commission’s Minimum Capital Requirement Guidelines, amounting to N305 million for NICON and N375 million for Nig Re; and“ii. Directives requiring existing, operational insurance entities to transfer their entire capital injection funds into an escrow account at the Central Bank of Nigeria (CBN), as against the 10% statutory deposit requirement prescribed under Section 16(3) of NIIRA 2025,” the letter read.The companies maintained that they had met the statutory deadline for recapitalisation and had injected amounts above their adjusted capital requirements.NICON, according to the ministry, injected N20bn into a Mudaraba Term Deposit account with Lotus Bank Limited, compared with its adjusted requirement of N16bn.Nigeria Re, meanwhile, injected N30bn into a similar Mudaraba Term Deposit account, exceeding its adjusted requirement of N28bn. The companies also told the ministry that they had made statutory deposits with the CBN in line with Section 16(3) of the new insurance law.NICON deposited N2.5bn with the CBN, while Nigeria Re deposited N3.5bn. The petitioners further informed the ministry that they had already made initial fee payments of N80m and N75m, respectively.Related News20 varsities get ASUU nod to begin strikeN752bn Abuja-Kano highway to be completed by November – UmahiFG, NBA, UNICEF unveil free legal services for childrenThe ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. The companies also challenged what they described as a directive requiring existing and operational insurance firms to transfer their entire capital injection funds into an escrow account at the CBN, arguing that this exceeded the 10 per cent statutory deposit requirement provided under Section 16(3) of NIIRA 2025.The ministry, in the letter, said it had received the petition and was seeking NAICOM’s position on the issues raised.“The Ministry has received a petition dated 27th July, 2026 from NICON Insurance Limited (NICON) and Nigeria Reinsurance Corporation (Nig Re) regarding the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act (NIIRA), 2025.“The petitioners have raised notable grievances against the Commission regarding:“i. The assessment and demand for a 1% Capital Injection Fee alongside additional processing and verification fees pursuant to Appendix 2 of the Commission’s Minimum Capital Requirement Guidelines, amounting to N305 million for NICON and N375 million for Nig Re; and“ii. Directives requiring existing, operational insurance entities to transfer their entire capital injection funds into an escrow account at the Central Bank of Nigeria (CBN), as against the 10% statutory deposit requirement prescribed under Section 16(3) of NIIRA 2025,” the letter read.The companies maintained that they had met the statutory deadline for recapitalisation and had injected amounts above their adjusted capital requirements.NICON, according to the ministry, injected N20bn into a Mudaraba Term Deposit account with Lotus Bank Limited, compared with its adjusted requirement of N16bn.Nigeria Re, meanwhile, injected N30bn into a similar Mudaraba Term Deposit account, exceeding its adjusted requirement of N28bn. The companies also told the ministry that they had made statutory deposits with the CBN in line with Section 16(3) of the new insurance law.NICON deposited N2.5bn with the CBN, while Nigeria Re deposited N3.5bn. The petitioners further informed the ministry that they had already made initial fee payments of N80m and N75m, respectively.Related News20 varsities get ASUU nod to begin strikeN752bn Abuja-Kano highway to be completed by November – UmahiFG, NBA, UNICEF unveil free legal services for childrenThe ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. The ministry, in the letter, said it had received the petition and was seeking NAICOM’s position on the issues raised.“The Ministry has received a petition dated 27th July, 2026 from NICON Insurance Limited (NICON) and Nigeria Reinsurance Corporation (Nig Re) regarding the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act (NIIRA), 2025.“The petitioners have raised notable grievances against the Commission regarding:“i. The assessment and demand for a 1% Capital Injection Fee alongside additional processing and verification fees pursuant to Appendix 2 of the Commission’s Minimum Capital Requirement Guidelines, amounting to N305 million for NICON and N375 million for Nig Re; and“ii. Directives requiring existing, operational insurance entities to transfer their entire capital injection funds into an escrow account at the Central Bank of Nigeria (CBN), as against the 10% statutory deposit requirement prescribed under Section 16(3) of NIIRA 2025,” the letter read.The companies maintained that they had met the statutory deadline for recapitalisation and had injected amounts above their adjusted capital requirements.NICON, according to the ministry, injected N20bn into a Mudaraba Term Deposit account with Lotus Bank Limited, compared with its adjusted requirement of N16bn.Nigeria Re, meanwhile, injected N30bn into a similar Mudaraba Term Deposit account, exceeding its adjusted requirement of N28bn. The companies also told the ministry that they had made statutory deposits with the CBN in line with Section 16(3) of the new insurance law.NICON deposited N2.5bn with the CBN, while Nigeria Re deposited N3.5bn. The petitioners further informed the ministry that they had already made initial fee payments of N80m and N75m, respectively.Related News20 varsities get ASUU nod to begin strikeN752bn Abuja-Kano highway to be completed by November – UmahiFG, NBA, UNICEF unveil free legal services for childrenThe ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. “The Ministry has received a petition dated 27th July, 2026 from NICON Insurance Limited (NICON) and Nigeria Reinsurance Corporation (Nig Re) regarding the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act (NIIRA), 2025.“The petitioners have raised notable grievances against the Commission regarding:“i. The assessment and demand for a 1% Capital Injection Fee alongside additional processing and verification fees pursuant to Appendix 2 of the Commission’s Minimum Capital Requirement Guidelines, amounting to N305 million for NICON and N375 million for Nig Re; and“ii. Directives requiring existing, operational insurance entities to transfer their entire capital injection funds into an escrow account at the Central Bank of Nigeria (CBN), as against the 10% statutory deposit requirement prescribed under Section 16(3) of NIIRA 2025,” the letter read.The companies maintained that they had met the statutory deadline for recapitalisation and had injected amounts above their adjusted capital requirements.NICON, according to the ministry, injected N20bn into a Mudaraba Term Deposit account with Lotus Bank Limited, compared with its adjusted requirement of N16bn.Nigeria Re, meanwhile, injected N30bn into a similar Mudaraba Term Deposit account, exceeding its adjusted requirement of N28bn. The companies also told the ministry that they had made statutory deposits with the CBN in line with Section 16(3) of the new insurance law.NICON deposited N2.5bn with the CBN, while Nigeria Re deposited N3.5bn. The petitioners further informed the ministry that they had already made initial fee payments of N80m and N75m, respectively.Related News20 varsities get ASUU nod to begin strikeN752bn Abuja-Kano highway to be completed by November – UmahiFG, NBA, UNICEF unveil free legal services for childrenThe ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. “The petitioners have raised notable grievances against the Commission regarding:“i. The assessment and demand for a 1% Capital Injection Fee alongside additional processing and verification fees pursuant to Appendix 2 of the Commission’s Minimum Capital Requirement Guidelines, amounting to N305 million for NICON and N375 million for Nig Re; and“ii. Directives requiring existing, operational insurance entities to transfer their entire capital injection funds into an escrow account at the Central Bank of Nigeria (CBN), as against the 10% statutory deposit requirement prescribed under Section 16(3) of NIIRA 2025,” the letter read.The companies maintained that they had met the statutory deadline for recapitalisation and had injected amounts above their adjusted capital requirements.NICON, according to the ministry, injected N20bn into a Mudaraba Term Deposit account with Lotus Bank Limited, compared with its adjusted requirement of N16bn.Nigeria Re, meanwhile, injected N30bn into a similar Mudaraba Term Deposit account, exceeding its adjusted requirement of N28bn. The companies also told the ministry that they had made statutory deposits with the CBN in line with Section 16(3) of the new insurance law.NICON deposited N2.5bn with the CBN, while Nigeria Re deposited N3.5bn. The petitioners further informed the ministry that they had already made initial fee payments of N80m and N75m, respectively.Related News20 varsities get ASUU nod to begin strikeN752bn Abuja-Kano highway to be completed by November – UmahiFG, NBA, UNICEF unveil free legal services for childrenThe ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. “i. The assessment and demand for a 1% Capital Injection Fee alongside additional processing and verification fees pursuant to Appendix 2 of the Commission’s Minimum Capital Requirement Guidelines, amounting to N305 million for NICON and N375 million for Nig Re; and“ii. Directives requiring existing, operational insurance entities to transfer their entire capital injection funds into an escrow account at the Central Bank of Nigeria (CBN), as against the 10% statutory deposit requirement prescribed under Section 16(3) of NIIRA 2025,” the letter read.The companies maintained that they had met the statutory deadline for recapitalisation and had injected amounts above their adjusted capital requirements.NICON, according to the ministry, injected N20bn into a Mudaraba Term Deposit account with Lotus Bank Limited, compared with its adjusted requirement of N16bn.Nigeria Re, meanwhile, injected N30bn into a similar Mudaraba Term Deposit account, exceeding its adjusted requirement of N28bn. The companies also told the ministry that they had made statutory deposits with the CBN in line with Section 16(3) of the new insurance law.NICON deposited N2.5bn with the CBN, while Nigeria Re deposited N3.5bn. The petitioners further informed the ministry that they had already made initial fee payments of N80m and N75m, respectively.Related News20 varsities get ASUU nod to begin strikeN752bn Abuja-Kano highway to be completed by November – UmahiFG, NBA, UNICEF unveil free legal services for childrenThe ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. “ii. Directives requiring existing, operational insurance entities to transfer their entire capital injection funds into an escrow account at the Central Bank of Nigeria (CBN), as against the 10% statutory deposit requirement prescribed under Section 16(3) of NIIRA 2025,” the letter read.The companies maintained that they had met the statutory deadline for recapitalisation and had injected amounts above their adjusted capital requirements.NICON, according to the ministry, injected N20bn into a Mudaraba Term Deposit account with Lotus Bank Limited, compared with its adjusted requirement of N16bn.Nigeria Re, meanwhile, injected N30bn into a similar Mudaraba Term Deposit account, exceeding its adjusted requirement of N28bn. The companies also told the ministry that they had made statutory deposits with the CBN in line with Section 16(3) of the new insurance law.NICON deposited N2.5bn with the CBN, while Nigeria Re deposited N3.5bn. The petitioners further informed the ministry that they had already made initial fee payments of N80m and N75m, respectively.Related News20 varsities get ASUU nod to begin strikeN752bn Abuja-Kano highway to be completed by November – UmahiFG, NBA, UNICEF unveil free legal services for childrenThe ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. The companies maintained that they had met the statutory deadline for recapitalisation and had injected amounts above their adjusted capital requirements.NICON, according to the ministry, injected N20bn into a Mudaraba Term Deposit account with Lotus Bank Limited, compared with its adjusted requirement of N16bn.Nigeria Re, meanwhile, injected N30bn into a similar Mudaraba Term Deposit account, exceeding its adjusted requirement of N28bn. The companies also told the ministry that they had made statutory deposits with the CBN in line with Section 16(3) of the new insurance law.NICON deposited N2.5bn with the CBN, while Nigeria Re deposited N3.5bn. The petitioners further informed the ministry that they had already made initial fee payments of N80m and N75m, respectively.Related News20 varsities get ASUU nod to begin strikeN752bn Abuja-Kano highway to be completed by November – UmahiFG, NBA, UNICEF unveil free legal services for childrenThe ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. NICON, according to the ministry, injected N20bn into a Mudaraba Term Deposit account with Lotus Bank Limited, compared with its adjusted requirement of N16bn.Nigeria Re, meanwhile, injected N30bn into a similar Mudaraba Term Deposit account, exceeding its adjusted requirement of N28bn. The companies also told the ministry that they had made statutory deposits with the CBN in line with Section 16(3) of the new insurance law.NICON deposited N2.5bn with the CBN, while Nigeria Re deposited N3.5bn. The petitioners further informed the ministry that they had already made initial fee payments of N80m and N75m, respectively.Related News20 varsities get ASUU nod to begin strikeN752bn Abuja-Kano highway to be completed by November – UmahiFG, NBA, UNICEF unveil free legal services for childrenThe ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. Nigeria Re, meanwhile, injected N30bn into a similar Mudaraba Term Deposit account, exceeding its adjusted requirement of N28bn. The companies also told the ministry that they had made statutory deposits with the CBN in line with Section 16(3) of the new insurance law.NICON deposited N2.5bn with the CBN, while Nigeria Re deposited N3.5bn. The petitioners further informed the ministry that they had already made initial fee payments of N80m and N75m, respectively.Related News20 varsities get ASUU nod to begin strikeN752bn Abuja-Kano highway to be completed by November – UmahiFG, NBA, UNICEF unveil free legal services for childrenThe ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. NICON deposited N2.5bn with the CBN, while Nigeria Re deposited N3.5bn. The petitioners further informed the ministry that they had already made initial fee payments of N80m and N75m, respectively.Related News20 varsities get ASUU nod to begin strikeN752bn Abuja-Kano highway to be completed by November – UmahiFG, NBA, UNICEF unveil free legal services for childrenThe ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. The ministry said the companies therefore believed they had fulfilled the statutory requirement ahead of the July 31, 2026 deadline.The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. The letter stated: “The petitioners contend that they have complied with the statutory deadline of 31st July 2026 by injecting N20 billion and N30 billion respectively into Mudaraba Term Deposit accounts with Lotus Bank Limited, exceeding their adjusted requirements of N16 billion and N28 billion.“They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. “They also submit that they have deposited N2.5 billion and N3.5 billion with the CBN pursuant to Section 16(3) of NIIRA 2025 and had made initial fee payments of N80 million and N75 million.”Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. Against this backdrop, the Finance Ministry asked NAICOM to provide a detailed explanation of the basis for the disputed charges and escrow directives. It also directed the insurance regulator to suspend enforcement of the contested measures against the two companies pending the determination of the petition.“In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. “In view of the above, you are requested to provide a detailed response and legal justification regarding the issues raised. Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1 per cent capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation.”The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. The intervention comes as the Federal Government pushes insurance companies to strengthen their capital base under the ongoing industry recapitalisation programme.The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. The recapitalisation exercise is intended to strengthen the financial capacity of insurers and reinsurers, improve their ability to underwrite larger risks, enhance industry resilience and position the sector to play a bigger role in financing economic activities.However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. However, the dispute involving NICON and Nigeria Re raises questions about the fees being imposed on companies participating in the exercise and the extent of funds that regulators can require companies to place with the CBN.The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. The issue is particularly significant for existing insurance companies that are already operating and seeking to meet the new capital requirements, as opposed to new entrants seeking licences.NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. NICON and Nigeria Re’s position, as conveyed to the Finance Ministry, is that the companies have already injected capital above their adjusted requirements and fulfilled the statutory deposit obligation under the new insurance law.The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. The companies have also challenged the basis for requiring the entire capital injection to be transferred to a CBN escrow account when, according to their interpretation of Section 16(3) of NIIRA 2025, only 10 per cent is required as a statutory deposit.The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. The letter did not state the outcome of any subsequent engagement between the ministry and NAICOM, nor did it disclose whether the regulator had responded to the issues raised.It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. It also referenced an alleged N500m demand described in the subject of the letter as shareholders’ funds constituting an illegal one per cent fee on the capital injection, as well as an additional N180m capitalisation charge.However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. However, the substantive body of the letter specifically quantified the disputed assessment at N305m for NICON and N375m for Nigeria Re, comprising the one per cent capital injection fee and additional processing and verification charges.The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. The Finance Ministry’s intervention effectively places the disputed charges and the full-capital escrow directive on hold pending NAICOM’s response and legal justification.For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. For the two companies, the immediate issue is now whether the regulator can sustain the disputed fees and the demand for full transfer of the recapitalisation funds, while the broader insurance industry awaits clarity on the implementation of the new capital regime.The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law. The development also highlights the regulatory balancing act involved in the recapitalisation exercise: strengthening insurers’ balance sheets without imposing additional financial burdens or requirements that companies contend are not expressly provided for under the law.