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, over allegations of regulatory fraud and abuse of office linked to the recently concluded insurance industry recapitalisation exercise.
The call was contained in a statement signed by GGA Executive Director, Peter Bawa, who said the allegations had been formally brought before the Economic and Financial Crimes Commission (EFCC), the Federal Ministry of Finance and the Presidency.
According to the group, the allegations centre on the alleged demand for a one per cent capital injection fee on shareholders’ funds, the directive requiring insurers to transfer their entire recapitalisation capital into Central Bank of Nigeria escrow accounts, and the collection of about ₦180 million purportedly for consultants who, it alleged, were never engaged.
Bawa said the issues raised were matters of financial accountability involving potentially tens of billions of naira across the insurance industry and should therefore be subjected to an independent investigation.
The GGA also cited petitions by NICON Insurance Limited and Nigeria Reinsurance Corporation to the EFCC, Ministry of Finance and Presidency, challenging the legal basis of some of NAICOM’s directives during the recapitalisation exercise and raising questions over the destination of funds collected.
The group noted that the Ministry of Finance had directed NAICOM to suspend enforcement of the disputed fees and full-capital escrow requirements against the two companies pending the determination of their petition.
It further said reports indicating that the disputed charges could amount to tens of billions of naira industry-wide had created uncertainty around an exercise designed to strengthen the financial capacity of the insurance sector.
“The insurance industry has just raised over ₦1.079 trillion in fresh capital. That achievement must not be overshadowed by unresolved questions of regulatory overreach and possible financial impropriety,” Bawa said.
The organisation argued that Omosehin’s continued stay in office could affect public confidence in the regulator while the allegations were being examined, urging President Tinubu to remove him to allow what it described as a full, independent and transparent investigation.
The GGA acknowledged that NAICOM had denied any finding of wrongdoing and dismissed reports that the Commissioner had been detained as false. It, however, maintained that the existence of a formal EFCC petition involving shareholders’ funds warranted heightened accountability.
The group also warned that the controversy could affect the implementation of the Nigerian Insurance Industry Reform Act 2025 and undermine recent efforts to improve market discipline and capital adequacy.
“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 said.
The GGA said it would continue to monitor the matter and engage relevant institutions until the allegations are investigated and the concerns surrounding NAICOM’s regulatory conduct are resolved.
