By Niyi Jacobs
Controversy surrounding the recently concluded insurance industry recapitalisation exercise has deepened following the invitation of the Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Olusegun Ayo Omosehin, by the Economic and Financial Crimes Commission (EFCC) over alleged fees collected from insurance companies.
The EFCC inquiry followed a petition by NICON Insurance Plc and Nigeria Reinsurance Corporation, which questioned the legality of various charges imposed during the recapitalisation process.
The companies alleged that insurers were subjected to a one per cent charge on fresh capital raised, verification fees and additional registration charges, with the total disputed payments across the industry reportedly exceeding ₦30 billion.
NICON and Nigeria Re also reportedly challenged a ₦180 million recapitalisation verification fee, while seeking clarification on the legal basis for the one per cent capital injection charge.
The EFCC is expected to examine the circumstances surrounding the charges, including their legal and regulatory basis, whether the necessary approvals were obtained and how the funds collected were managed.
The development comes shortly after NAICOM concluded the recapitalisation exercise and issued new operating licences to insurance companies that met the revised minimum capital requirements.
Meanwhile, the Federal Ministry of Finance has reportedly queried NAICOM over an alleged ₦680 million recapitalisation fee and directed the suspension of the one per cent capital injection charge imposed on NICON and Nigeria Re.
The latest developments have therefore raised fresh questions about the regulatory framework and financial charges associated with the recapitalisation exercise.
However, the allegations remain subject to investigation, and no wrongdoing has been established against the NAICOM Commissioner or the commission. The EFCC probe is expected to determine whether the disputed charges were lawfully imposed and whether any financial impropriety occurred
