Nigeria Finance Ministry suspends NAICOM insurance fees

The Federal Ministry of Finance has ordered the National Insurance Commission (NAICOM) to suspend the enforcement of disputed recapitalisation fees and directives. The order follows a petition from NICON Insurance Limited and Nigeria Reinsurance Corporation regarding the implementation of the Nigerian Insurance Industry Reform Act, 2025.

The dispute centers on a 1% capital injection fee and additional processing charges, which have resulted in assessments of N305m for NICON and N375m for Nigeria Re. Additionally, the companies challenged a directive requiring them to transfer their entire fresh capital into an escrow account with the Central Bank of Nigeria, arguing this exceeds the 10% statutory deposit requirement mandated by law.

The Ministry has requested a detailed response and legal justification from NAICOM concerning these assessments and the escrow requirements.