The National Insurance Commission (NAICOM) has refuted widespread reports alleging a ₦100 billion ($100bn referenced) fraud scheme during the sector’s recent recapitalisation drive, while dismissing allegations that its top officials were detained by law enforcement.
In a formal response titled “Rejoinder to a False and Misleading Publication on the Recently Concluded Recapitalization Exercise,” issued on Thursday, September 10, 2026, the insurance regulator described the allegations as false, malicious, and a deliberate attempt to subvert the regulatory framework.
The controversy stems from an online report published on Wednesday, September 9, 2026, titled “100 Billion Fraudulent Insurance Recapitalization: EFCC Detains NAICOM Director and Commissioner, Both on Bail”.
The story claimed that the Economic and Financial Crimes Commission (EFCC) had taken Commissioner for Insurance Olusegun Ayo Omosehin alongside senior directors into administrative custody over allegations involving unauthorized fee collection and allocation of allowances.
NAICOM countered by accusing the promoters of NICON Insurance Plc and Nigeria Reinsurance Corporation, two entities currently facing liquidation, of sponsoring the publication to undermine regulatory authority.
The promoters have contended that they met the industry recapitalisation deadline on July 31, 2026, by funding accounts with Lotus Bank (₦20 billion for NICON Insurance and ₦30 billion for Nigeria Re) and making statutory deposits with the Central Bank of Nigeria (CBN) under Section 16(3) of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Addressing the allegations, NAICOM’s management outlined several key clarifications: No Indictments or Arrests, neither Commissioner Olusegun Ayo Omosehin nor any commission director has been indicted, charged, or held in custody by the EFCC or any other law enforcement body.
NAICOM acknowledged that the EFCC had requested information following petitions submitted by the promoters. The commission emphasized that providing administrative clarifications to a law enforcement agency is standard procedure and does not indicate criminal culpability.
The entire recapitalisation exercise was executed transparently in line with the provisions of NIIRA 2025 and official commission guidelines to enhance sector solvency and protect policyholder interests.
Existing court filings and disputes raised by liquidated entities do not obstruct or invalidate NAICOM’s legal mandate to enforce regulatory compliance across the sector.
The commission urged media organisations to verify reports through official channels before publication to prevent market instability.
NAICOM demanded an immediate retraction of the unverified claims from the original publishers and reassured policyholders, investors, and industry stakeholders of its commitment to transparency, good governance, and regulatory oversight.
