Reject political pressure to overturn revocation of Nigeria Re-Insurance, NICON licences – Kari to Oyedele
The Minister of Finance, Taiwo Oyedele, has been urged to reject political intervention over the revocation of the licences of Senator Jimoh Ibrahim’s Nigeria Reinsurance Corporation and NICON Insurance. A former Managing Director of Nigerian National Reinsurance Corporation, Nigeria Re-Insurance and NICON Insurance, Mohammed Kari, made the call on Thursday. Kari, who was also a former […] Reject…
A former Nigeria National Reinsurance Corporation and NICON Insurance chief, Mohammed Kari, has urged Nigeria’s Finance Minister, Taiwo Oyedele, to oppose any political intervention aimed at reversing the revocation of the licences for both companies. Kari, who served as a commissioner at the National Insurance Commission (NAICOM), made the plea in a letter to Oyedele, arguing that allowing political interference would undermine fair competition within the Nigerian insurance industry.
NAICOM had revoked the licenses of Nigeria Re-Insurance and not listed NICON among insurance firms meeting the recapitalisation requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025. This decision sparked opposition from the two companies, leading to a court challenge. In response, the Ministry of Finance, in a letter dated August 6, 2026, ordered NAICOM to suspend the enforcement of the recapitalisation fees against the two insurance firms.
Kari emphasized that the Ministry of Finance should refrain from interfering in regulatory enforcement actions and instead allow NAICOM to enforce statutory requirements uniformly. He highlighted that NICON and Nigeria Re-Insurance were founded by the Federal Government in 1969 and 1977, respectively, and previously played crucial roles in the Nigerian insurance sector.
However, their market leadership diminished following their privatization in the 2000s due to governance issues, excessive leverage, balance-sheet weaknesses, and unpaid claims.
The former NAICOM commissioner insisted that the Nigerian insurance industry had proven compliance with new capital requirements was attainable, with over 90 percent of operators adhering to the statutory process. Kari criticized the companies for seeking special treatment through political channels, arguing that such actions undermine regulatory fairness and equal treatment for all operators.
He cited sections 8(6) and 8(9) of the NIIRA 2025, stating that the law does not grant the Ministry of Finance a role in the process of revoking licenses.
Kari asserted that executive intervention should only be justified when a financial institution poses a genuine systemic risk to the economy, whereas NICON and Nigeria Re-Insurance no longer hold the market size or influence to pose such a threat. He urged the Federal Government to resist the temptation to grant special dispensations to operators who fail to comply with regulatory requirements.
Written by urgent.news from Daily Post Nigeria's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
