NAICOM Freezes Nigeria Re Accounts, Revokes Licence

By LOVETH-AZODO CHIJIOKE, Lagos

The National Insurance Commission (NAICOM) has frozen all bank accounts belonging to the Nigeria Reinsurance Corporation (Nigeria Re) after revoking the company’s operating licence for failing to meet the minimum capital requirement under the insurance industry’s recapitalisation programme.

The action followed the appointment of Senior Advocate of Nigeria (SAN), Mr. Muiz Banire, as Receiver and Provisional Liquidator of the company to oversee its liquidation.

The development was contained in a public notice dated August 4, in which Banire disclosed that his appointment took effect from August 3, following NAICOM’s cancellation of Nigeria Re’s certificate of registration.

According to the notice, the appointment was made pursuant to the Commission’s statutory powers to take charge of the receivership and liquidation of Nigeria Reinsurance Corporation (RR-002).

Banire consequently directed banks, financial institutions, insurance policyholders and members of the public not to honour any instruction relating to the company’s affairs except those issued by him or persons expressly authorised by him.

He also announced the immediate freezing of all bank accounts belonging to Nigeria Re pending further directives from his office.

“Members of the general public, banks and financial institutions in Nigeria are hereby informed that no financial transactions should be conducted pursuant to any instruction from anyone except those that I issue as the Receiver/Provisional Liquidator,” the notice stated.

He explained that only instructions bearing his official seal and stamp as a legal practitioner, or those issued by persons duly authorised by him, would be recognised throughout the liquidation process.

Nigeria Re became the first major casualty of NAICOM’s recapitalisation exercise after failing to meet the new minimum capital requirement by the July 31, 2026 deadline prescribed under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

The insurance regulator had recently commenced the issuance of fresh operating licence certificates to recapitalised insurance companies, marking the transition to a new capital regime aimed at strengthening operators’ financial capacity, solvency and claims-paying ability.

The revocation of Nigeria Re’s licence effectively removes the company from the list of licensed insurance operators while the liquidation process is expected to proceed under the supervision of the appointed receiver.