The Good Governance Assembly has called on President Bola Ahmed Tinubu to remove the Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission, Olusegun Ayo Omosehin, over allegations of regulatory abuse surrounding the recently concluded insurance industry recapitalisation exercise.
The group, in a statement signed by its Executive Director, Peter Bawa, said the allegations against the NAICOM boss warranted an independent investigation, particularly as petitions over the disputed recapitalisation charges had been submitted to the Economic and Financial Crimes Commission and the Federal Ministry of Finance.
The GGA alleged that NAICOM imposed a one per cent capital injection fee on shareholders’ funds, directed insurance companies to transfer their entire recapitalisation capital into a Central Bank of Nigeria escrow account and collected about N180m for consultants who, according to the group, were never engaged.
The allegations come against the backdrop of a dispute between NAICOM and NICON Insurance Limited and the Nigeria Reinsurance Corporation over fees and the treatment of recapitalisation funds.
The Federal Ministry of Finance had, in an August 6 letter, directed NAICOM to suspend enforcement of the disputed processing fees, the one per cent capital injection fee and the directive requiring the two companies to transfer their entire fresh capital into a CBN escrow account pending the determination of their petition.
The ministry also demanded a detailed response and legal justification from NAICOM over the disputed charges, which it said amounted to N305m for NICON and N375m for Nigeria Re.
Bawa said the controversy raised serious questions about financial accountability in the insurance sector.
He said, “The allegations against Mr Ayo Omosehin are not administrative technicalities. They centre on the alleged unlawful demand for a one per cent capital injection fee on shareholders’ funds, the forced transfer of entire recapitalisation capital into Central Bank of Nigeria escrow accounts in clear violation of Section 16(3) of the Nigerian Insurance Industry Reform Act 2025, and the collection of approximately N180m purportedly for consultants who were never engaged.”
“These are serious questions of financial accountability involving tens of billions of naira across the industry. An official facing such weighty accusations cannot continue to head the apex regulatory body while the investigation remains pending,” he added.
The group said NICON and Nigeria Re had petitioned relevant authorities over NAICOM’s directives during the recapitalisation exercise, questioning the legal basis of some of the charges and the handling of the funds.
According to the Finance Ministry, the two companies had challenged NAICOM’s demand for a one per cent capital injection fee, alongside processing and verification charges, as well as the directive to transfer their entire capital injection funds into a CBN escrow account instead of the 10 per cent statutory deposit requirement they said was provided under Section 16(3) of the NIIRA 2025.
The GGA said the controversy was particularly significant given the scale of the recapitalisation exercise.
NAICOM recently disclosed that the exercise generated N1.079tn in capital, with 48 insurance companies and two reinsurance companies meeting the new capital requirements and being re-licensed.
Bawa said, “Leaving Mr Omosehin in office under these circumstances risks further erosion of confidence among operators, policyholders and investors.
“The insurance industry has just raised over N1.079tn in fresh capital. That achievement must not be overshadowed by unresolved questions of regulatory overreach and possible financial impropriety.”
The GGA therefore urged President Tinubu to remove Omosehin to allow what it described as a full, independent and transparent investigation into the allegations.
“We therefore call on President Tinubu to remove the NAICOM boss without further delay so that a full, independent and transparent investigation can proceed free from any perception of interference,” Bawa said.
The organisation also said the controversy had attracted the attention of the EFCC, which reportedly sought clarification from NAICOM over the allegations.
It added that the fact that a formal petition had been submitted to the anti-graft agency warranted greater scrutiny of the regulator’s handling of the recapitalisation exercise.
The GGA further warned that the controversy could undermine confidence in the implementation of the Nigerian Insurance Industry Reform Act 2025 if the allegations were not properly investigated.
“Regulatory integrity is non-negotiable. The Commissioner for Insurance must be above suspicion, especially at a time when the sector is seeking to deepen penetration and support national economic development,” Bawa stated.
NAICOM has previously rejected allegations of wrongdoing linked to the recapitalisation exercise. Omosehin also said the exercise had produced N1.079tn in fresh capital for the sector.
The GGA said it would continue to monitor the matter and engage relevant authorities until the allegations were investigated.