The Good Governance Assembly (GGA) has called on President Bola Ahmed Tinubu to review the leadership of the National Insurance Commission (NAICOM) due to concerns over the recently concluded insurance industry recapitalisation exercise. This follows petitions and complaints submitted to government institutions regarding certain regulatory requirements introduced during the exercise. The civil society organisation stated that its position was based on submissions to the Economic and Financial Crimes Commission, the Federal Ministry of Finance, and the Presidency.
The complaints seek clarification on issues relating to fees and the handling of capital raised by some insurance companies. Specifically, NICON Insurance Limited and Nigeria Reinsurance Corporation raised concerns about certain requirements associated with the recapitalisation exercise. The Ministry of Finance has since directed the suspension of enforcement of some disputed requirements against the two companies pending further consideration.
GGA's Executive Director, Peter Bawa, emphasised the need for transparent resolution of the issues to protect confidence in the insurance industry. He stated that regulatory requirements must be properly grounded in law and clearly communicated to operators. The organisation is particularly concerned about reports of a proposed one per cent capital-related fee and arrangements involving the transfer of recapitalisation funds into designated accounts.
The GGA also questioned an amount reportedly collected for consultancy services, urging authorities to establish the facts and determine whether due procedures were followed. Despite the controversy, the organisation acknowledged that the recapitalisation exercise had raised more than N1.079 trillion in fresh capital, a significant development for efforts to deepen insurance penetration and strengthen the market.
The group urged the Federal Government to address the outstanding issues promptly and transparently. NAICOM has rejected reports suggesting that its leadership was found culpable of wrongdoing and dismissed reports of the alleged detention of the Commissioner for Insurance as false. The GGA called for the relevant authorities to establish the facts surrounding the petitions and disputed regulatory requirements.
The organisation emphasised that resolving the controversy would help protect confidence in the insurance industry and ensure that the recapitalisation programme remained focused on strengthening the sector. All parties involved are urged to allow the appropriate institutions to examine the issues and make their findings public where necessary.
The GGA will continue to monitor developments and engage relevant government institutions on the matter. The organisation's call for a review of NAICOM's leadership aims to ensure that the insurance industry operates with transparency and accountability.
Key points
- The Good Governance Assembly urges President Tinubu to review NAICOM leadership amid concerns over the insurance industry recapitalisation exercise.
- The recapitalisation exercise raised over N1.079 trillion in fresh capital, a significant development for Nigeria's insurance sector.
- The GGA calls for transparent resolution of the issues to protect confidence in the insurance industry.
