Recapitalization: NAICOM Explains EFCC Request, Rejects Fraud Claims

By LOVETH-AZODO CHIJIOKE, Lagos.

The National Insurance Commission (NAICOM) has denied allegations of fraud and misconduct linked to the recently concluded insurance industry recapitalization exercise, saying neither the Commissioner for Insurance nor any of its directors has been indicted, charged or found culpable of fraudulent activity.

The Commission was reacting to a publication titled, “100 Billion Fraudulent Insurance Recapitalization: EFCC Detains NAICOM Director and Commissioner, Both on Bail,” published on September 9, 2026.

In a statement issued by its management, NAICOM described the publication as false and misleading, saying it was based on allegations promoted by the promoters of NICON Insurance Plc and Nigeria Reinsurance Corporation, which the Commission said are currently under liquidation.

NAICOM said the recapitalisation exercise was conducted in accordance with the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and guidelines issued by the Commission to ensure a transparent and orderly implementation of the process.

According to the Commission, the exercise formed part of its statutory responsibility to strengthen the financial capacity, solvency and resilience of insurance institutions and protect policyholders.

NAICOM also clarified that a court order being referenced by the promoters did not restrain the Commission from carrying out its statutory and regulatory responsibilities.

On the alleged involvement of the Economic and Financial Crimes Commission (EFCC), NAICOM said the anti-graft agency had recently requested information and explanations from the Commission regarding allegations that had been circulated in the media.

The Commission said it responded promptly to the request and provided the relevant information and clarifications sought.

It stressed that responding to an information request from a law enforcement agency should not be interpreted as evidence of wrongdoing, indictment, detention or culpability.

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

The Commission further denied allegations of fraudulent recapitalisation activities and misappropriation of funds by its officials, saying the claims were unsubstantiated and did not reflect the circumstances of the matter.

NAICOM said it remained committed to corporate governance, transparency, regulatory integrity and accountability, adding that it would continue to discharge its responsibilities within the framework of applicable laws and regulations.

The regulator also called on the publishers of the report to retract and correct what it described as the misleading publication, urging the media to verify allegations before publication, particularly where they concern public institutions and issues capable of affecting confidence in critical sectors of the economy.

NAICOM advised insurance operators, investors, stakeholders and members of the public to disregard the publication and rely on official communications from the Commission and other competent authorities on matters concerning insurance regulation.

The Commission, however, said it remained willing to cooperate with lawful enquiries from relevant government agencies and would continue to perform its regulatory responsibilities in the interest of the Nigerian insurance industry.