* Calls for independent probe into disputed recapitalisation fees, escrow directives
The Good Governance Assembly (GGA) has called on President Bola Ahmed Tinubu to remove the Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Olusegun Ayo Omosehin, pending a full and independent investigation into allegations arising from the recently concluded insurance industry recapitalisation exercise.
In a statement signed by its Executive Director, Peter Bawa, the group said the allegations surrounding the exercise raise serious questions about regulatory accountability, financial transparency and the administration of shareholders’ funds.
The GGA said its position followed petitions reportedly submitted by NICON Insurance Limited and Nigeria Reinsurance Corporation to the Economic and Financial Crimes Commission (EFCC), the Federal Ministry of Finance and the Presidency.
According to the organisation, the complaints centre on the alleged imposition of a one per cent capital injection fee on shareholders’ funds, the directive requiring companies to transfer their recapitalisation funds into Central Bank of Nigeria (CBN) escrow accounts, and an alleged collection of about N180 million for verification consultants whose engagement has been questioned.
The companies have challenged the legal basis of some of the disputed requirements. The Federal Ministry of Finance subsequently directed NAICOM to suspend enforcement of the disputed one per cent capital injection fee, other processing and verification charges, and the full-capital escrow requirement against NICON and Nigeria Re pending determination of the petition.
“These are not matters that should be dismissed as mere administrative disagreements. They raise fundamental questions about regulatory authority, financial accountability and the handling of shareholders’ funds,” Bawa said.
He added that the continued presence of the NAICOM boss at the centre of the controversy could create a perception of conflict while the relevant institutions are examining the allegations.
The GGA also expressed concern over reports that the disputed charges could amount to billions of naira across the industry, noting that the recapitalisation exercise was designed to strengthen the insurance sector and restore investor confidence.
The sector recently concluded the recapitalisation exercise with NAICOM reporting that the industry attracted approximately N1.079 trillion in fresh capital. The regulator said 48 insurance companies and two reinsurance companies met the new capital requirements and were relicensed.
Bawa said the achievement should not be overshadowed by unresolved questions surrounding the implementation of the exercise.
“The insurance industry has just gone through one of its most significant capital-raising exercises, attracting over N1 trillion in fresh capital. Such a major financial exercise must be accompanied by the highest standards of transparency and accountability.
“We therefore urge President Tinubu to consider the removal of Mr. Omosehin from office to allow a credible, independent and transparent investigation to take place without any perception of interference.”
The organisation also acknowledged that NAICOM has rejected allegations of wrongdoing and described some reports surrounding the controversy as false and misleading. The regulator has maintained that the recapitalisation exercise was conducted in accordance with the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and its regulatory guidelines.
However, the GGA maintained that the conflicting positions make an independent examination of the issues necessary.
“Regulatory integrity is critical to the survival and credibility of the insurance industry. Where serious allegations involving public regulation and shareholders’ funds have been formally raised, the appropriate response is transparent investigation and accountability,” Bawa stated.
He urged the EFCC, the Ministry of Finance and other relevant authorities to establish the facts surrounding the disputed fees, the management of funds collected and the legal basis for the escrow directives.
The GGA said it would continue to monitor the matter and engage relevant institutions until the allegations are conclusively addressed and public confidence in the regulatory process is restored.
This version is more publication-ready because it does not present the allegations as established facts, while still making the GGA’s demand and the substance of the controversy clear.