NAICOM Denies Fraud Allegations, As No Official Detained Over Recapitalisation Exercise

The National Insurance Commission (NAICOM) has dismissed a publication alleging a N100 billion fraud in the recently concluded insurance recapitalisation exercise and the detention of its Commissioner and a Director by the Economic and Financial Crimes Commission (EFCC).

In a rejoinder issued, NAICOM said the report, titled ‘100 Billion Fraudulent Insurance Recapitalisation: EFCC Detains NAICOM director and commissioner, Both on Bail’, the Commission stated categorically that neither the Commissioner for Insurance nor any director of NAICOM has been indicted, charged, detained, or found culpable in respect of any fraudulent activity.

NAICOM said the recapitalisation was conducted strictly in accordance with the Nigerian Insurance Industry Reform Act (NIIRA) 2025, and guidelines issued by the Commission to ensure a transparent and legally compliant process.

According to the regulator, the exercise was part of its statutory responsibility to strengthen the financial capacity, solvency and resilience of insurance institutions for the protection of policyholders and overall stability of the sector.

“43 insurers met the new capital requirements. The exercise was not restrained by any court order. The Commission remains fully empowered to discharge its functions under extant legislation,” NAICOM stated

Addressing the reference to the Economic and Financial Crimes Commission, NAICOM said, “In line with our commitment to transparency and accountability, NAICOM promptly responded and provided all relevant information and clarifications sought.”

It emphasized that responding to a request for information from a law enforcement agency is a routine administrative process and should not be misconstrued as evidence of wrongdoing, indictment, or culpability.

“At no time did the Commission receive any finding of wrongdoing in relation to the matters on which clarification was sought,” NAICOM added.

The Commission described the allegations as entirely unsubstantiated, speculative and designed to erode public confidence in NAICOM and the insurance industry.

The statement said, “NAICOM is a law-abiding institution that operates strictly within its statutory mandate. We cannot stand by and allow malicious attempts to present unverified allegations as established facts.”

NAICOM reaffirmed its commitment to cooperating with all lawful enquiries by government agencies and to discharging its regulatory responsibilities with professionalism, integrity and transparency.

The recapitalisation exercise, concluded under NIIRA 2025, attracted about N720 billion in fresh capital into the industry. Six companies, including NICON Insurance and Nigeria Reinsurance Corporation, failed to meet the requirements and are currently undergoing liquidation or restructuring processes.