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), Olusegun Ayo Omosehin, from office over allegations arising from the recently concluded insurance industry recapitalisation exercise.
The civil society organisation, in a statement signed by its Executive Director, Peter Bawa, alleged regulatory overreach, abuse of office and financial impropriety in the implementation of the recapitalisation programme.
The group said its demand was based on a petition before the Economic and Financial Crimes Commission (EFCC) and the Federal Ministry of Finance concerning disputed fees and capital transfer requirements imposed during the exercise. 
Among the issues raised are an alleged one per cent capital injection fee, the directive requiring certain insurers to transfer their recapitalisation funds into an escrow account with the Central Bank of Nigeria (CBN), and an alleged N180 million payment described as a fee for verification consultants.
The allegations have also been raised by NICON Insurance Limited and Nigeria Reinsurance Corporation, which petitioned government authorities over the disputed requirements. The Federal Ministry of Finance subsequently directed NAICOM to suspend enforcement of the contested fees and the full-capital escrow directive against the two companies pending determination of their petition.
The ministry also requested NAICOM to provide detailed explanations and legal justification for the disputed requirements.
According to the GGA, the controversy raises questions about regulatory accountability and could affect confidence in the insurance industry.
“The allegations against Mr. Ayo Omosehin are not administrative technicalities,” Bawa said, alleging that the disputed requirements involved significant sums of money across the sector.
He argued that Omosehin should not remain in charge of the industry regulator while the allegations are being examined.
The GGA further claimed that the disputed charges, if applied across the industry, could amount to billions of naira.
It said the development was particularly concerning coming after the recapitalisation exercise, which was designed to strengthen the financial capacity of insurance companies and improve confidence in the sector.
The organisation also urged the Federal Government to ensure that any investigation into the allegations is independent and transparent.
“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.
However, NAICOM has rejected allegations of fraud or wrongdoing by its officials.
In a September 10 rejoinder, the commission described reports alleging fraudulent activities and the detention of its officials as false and misleading. NAICOM said neither the Commissioner for Insurance nor any of its directors had been indicted, charged or found culpable of fraudulent activity.
The commission also confirmed that the EFCC had requested information and explanations concerning allegations circulated in the media, but said responding to such a request was part of its cooperation with law-enforcement agencies and should not be interpreted as evidence of wrongdoing or culpability.
NICON and Nigeria Re, however, have maintained their call for an investigation, alleging that the one per cent capital injection fee lacked statutory backing and questioning the handling of funds collected during the recapitalisation process.
The companies have also challenged NAICOM’s alleged requirement that insurers transfer their entire capital injections into a CBN escrow account, arguing that Section 16(3) of the Nigerian Insurance Industry Reform Act 2025 provides for a 10 per cent statutory deposit.
