By Monire-Oluwa Lucas

The Federal Ministry of Finance has directed the National Insurance Commission (NAICOM) to suspend the enforcement of disputed fees and capital transfer requirements imposed on NICON Insurance Limited and Nigeria Reinsurance Corporation (Nig Re) pending the determination of a petition challenging the demands.

The directive followed a petition submitted by the two insurance companies over aspects of the ongoing recapitalisation exercise under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

In a letter dated August 6, 2026 and signed by the Permanent Secretary, Finance, Raymond Omachi, on behalf of the Minister of Finance and Coordinating Minister of the Economy, the ministry asked NAICOM to provide a detailed response and legal justification for the demands being challenged by the companies.

The ministry also directed the insurance regulator to put on hold the enforcement of the disputed processing fees, the one per cent capital injection fee and directives requiring the companies to transfer their entire capital injection funds into an escrow account with the Central Bank of Nigeria (CBN).

The letter, addressed to the Commissioner for Insurance, said the ministry had received a petition dated July 27, 2026, from NICON Insurance Limited and Nigeria Re concerning the recapitalisation process.

According to the ministry, the companies are challenging what they described as a demand for a one per cent capital injection fee, additional processing and verification charges and the requirement to transfer their recapitalisation funds into an escrow account at the CBN.

The petitioners claimed that the fees demanded from them amounted to N305 million for NICON and N375 million for Nig Re.

The companies also questioned the directive requiring existing insurance operators to transfer their entire capital injection funds into an escrow account at the CBN, arguing that this went beyond the 10 per cent statutory deposit requirement provided under Section 16(3) of NIIRA 2025.

The ministry said the petitioners had raised “notable grievances” against the Commission and requested NAICOM to explain the legal basis for the disputed charges and directives.

The development comes amid the insurance industry’s ongoing efforts to meet new minimum capital requirements introduced under the government’s insurance sector reform programme.

The companies told the ministry that they had already met their adjusted recapitalisation requirements before the July 31, 2026 deadline.

According to the petition, NICON had injected N20 billion into a Mudaraba Term Deposit account with Lotus Bank Limited, while Nig Re had injected N30 billion.

The companies said these amounts were above their respective adjusted capital requirements of N16 billion and N28 billion.

They further stated that they had deposited N2.5 billion and N3.5 billion respectively with the CBN in compliance with Section 16(3) of NIIRA 2025.

The petitioners also disclosed that they had made initial payments of N80 million and N75 million in fees.

The dispute therefore centres on whether the companies should make additional payments and transfer the full amounts of their capital injection funds into the CBN escrow arrangement after already meeting the applicable recapitalisation requirements.

The Finance Ministry, in its directive, asked NAICOM to provide a detailed response to the issues raised and furnish the legal justification for the Commission’s position.

“Pending the determination of the petition, the Commission should suspend the enforcement of the contested processing fees, 1% capital injection fee demands, and full-capital escrow transfer directives against NICON Insurance Limited and Nigeria Reinsurance Corporation,” the letter stated.

The directive places the disputed measures on hold while the ministry examines the complaints and the regulatory basis for the charges and fund-transfer requirements.

The petition also raises broader questions about the implementation of the new insurance capital regime, particularly the financial obligations placed on existing operators seeking to comply with the recapitalisation exercise.

The companies’ position is that they have already committed funds substantially above their adjusted capital requirements and have also met the statutory deposit obligation with the CBN.

The ministry’s intervention does not, however, amount to a final determination of the dispute. Rather, it requires NAICOM to respond to the complaints and justify its actions while the petition is being considered.

The outcome could have implications for other insurance companies participating in the recapitalisation exercise, particularly if the issues surrounding the one per cent capital injection fee, additional processing charges and escrow requirements extend beyond the two companies that filed the petition.

The latest development also places renewed attention on the need for clear and consistent interpretation of the provisions of NIIRA 2025 as the government seeks to strengthen the financial capacity of Nigeria’s insurance industry.

For NICON and Nig Re, the immediate relief is the suspension of enforcement of the disputed requirements while their petition is being determined. NAICOM is now expected to explain the legal basis for the charges and the directive on the transfer of capital injection funds before the matter is resolved.

• Dangote Refinery tops with 52.6mb

By Oluwayanmife Lucas

A total of 53.7 million barrels of crude oil and condensate were supplied to local refiners between April and June, under the Domestic Crude Supply Obligation (DCSO). The figure translates to an overall performance of 97.4 per cent for the second quarter (Q2) of 2026.

The Domestic Crude Supply Obligation (DCSO) is a statutory requirement under Nigeria’s Petroleum Industry Act (PIA) of 2021. It compels upstream oil producers to allocate a specific portion of their crude oil production to local, licensed refineries before they can export the rest. This policy aims to guarantee energy security, reduce heavy reliance on imported petroleum products and shield the domestic economy from foreign exchange volatility.

This was contained in the latest report released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on the enforcement of the DCSO in accordance with the provisions of Section 109 of the Petroleum Industry Act (PIA). In line with the PIA, the framework operates on a “willing buyer, willing seller” basis, which shapes eventual outcomes.

In the period under review, on refinery supply basis, he report showed that the Dangote Refinery, which required 63 million barrels in Q2, was offered higher volumes of 68.1 million barrels by the producers. The 68.1 million barrels offered to the Dangote Refinery by producers, the report said, represents 98 per cent of all offered volumes. Dangote Refinery however accepted 52.6 million barrels, representing 78 per cent of the quantity offered her.

The remaining 1.1 million barrels of crude oil supplied were shared by Aradel, Waltersmith, Edo, and another refinery.

According to the report, in the month of April, following consultations with stakeholders, 18, 127, 638 barrels were allocated to producers. It noted that the producers exceeded expectation, offering19, 312, 476 barrels to refiners. Eventually, 20, 879, 381 barrels were supplied to local refiners, meaning the producers met 114.9 per cent of their allocation.

In May, the Commission, in enforcing its DCSO, allocated 18,778, 392 barrels of crude oil to the producers but the producers exceeding their expectation once again, offered 23,187,893 barrels to the local refiners. However, the producers’ actual supply to the refiners by the end of the month stood at 14, 228, 865 barrels representing 75.8 per cent compliance.

NUPRC, in June allocated 18, 172,638 barrels to the producers, while the producers offered 26, 835, 119 barrels to refiners which in turn took 18, 606, 026 barrels representing a 102.4 per cent performance.

In a statement signed by the NUPRC’s Head, Media and Corporate Communications, Eniola Akinkuotu, stated that the improvement in DCSO coincided with an increase in local oil production and the signing of the long term crude supply agreement supported by bankable Sales and Purchase agreement between the Producers and Domestic refiners.

The Commission reaffirms its commitment to achieving the government’s objective of energy sufficiency. Leveraging the framework of the PIA, 2021, the Commission aims to sustain recent gains in crude oil production while continuously enforcing the DCSO.

Akinkuotu in the statement said the statistics shows that DCSO is being actively administered and enforced by the NUPRC. It explained that on a monthly basis, the Commission meets with stakeholders including crude oil producers and local licensed refineries after which the producers are allocated a specific volume of their crude oil and condensate which should be offered to local licensed refineries.

By Temitayo Lucas

The Managing Director and Chief Executive Officer of the Niger Delta Power Holding Company (NDPHC), Jennifer Adighije, an engineer, has called for the optimisation of Nigeria’s electricity infrastructure as a critical pathway to unlocking the country’s socio-economic transformation, saying reliable power remains the foundation for industrialisation, investment and sustainable national development.

Adighije made the call while delivering the Distinguished Alumni Lecture organised by the Department of Electrical and Electronics Engineering, Faculty of Engineering, University of Lagos (UNILAG), recently. The lecture was titled: “Optimising Electricity for Powering Nigeria’s New Socio-Economic Frontiers.”

According to Adighije, electricity has become the “currency of development” in today’s global economy, stressing that nations with reliable and affordable power supply are better positioned to create jobs, attract investments, drive industrialisation, strengthen healthcare and education systems, and improve the overall quality of life of their citizens.

She noted that the Electricity Act 2023 represents one of the most significant reforms in Nigeria’s power sector by granting states the authority to establish and regulate their own electricity markets.

“The legislation has created unprecedented opportunities for investment, innovation, competition and improved service delivery while accelerating the emergence of vibrant sub-national electricity markets capable of attracting greater private-sector participation,” she said.

Adighije said NDPHC is repositioning itself to maximise the value of its assets by improving operational efficiency, strengthening corporate governance, fostering strategic partnerships and ensuring that investments in the power sector translate into tangible benefits for Nigerians.

She reaffirmed the company’s commitment to supporting the ongoing transformation of the Nigerian Electricity Supply Industry (NESI) through efficient asset management and infrastructure optimisation.

Looking ahead, the NDPHC chief expressed confidence in the next generation of engineers, saying they would play a leading role in deploying smarter electricity grids and cleaner, technology-driven energy systems powered by artificial intelligence, automation, battery storage, smart metering and advanced power electronics.

She urged engineering students to embrace continuous learning, maintain professional discipline and see engineering as a vocation committed to solving societal challenges and building infrastructure that supports economic growth.

Adighije concluded that Nigeria’s electricity sector is entering a new era characterised by reform, innovation, collaboration and increased investment, emphasising that optimising electricity is essential to powering homes, industries and businesses while unlocking the country’s enormous socio-economic potential.

In her opening remarks, the Vice-Chancellor of the University of Lagos, Professor Folasade Ogunsola, described the lecture as a celebration of excellence, collaboration and the enduring legacy of UNILAG.

She commended Adighije as one of the University’s distinguished alumni whose professional accomplishments reflect the institution’s commitment to producing graduates with technical competence, integrity and visionary leadership.

Ogunsola noted that the rapid technological changes associated with the Fourth Industrial Revolution have made stronger partnerships among academia, industry and government increasingly important.

“Through initiatives such as this, we create platforms where experience meets aspiration and where our students are inspired by those who have successfully translated knowledge into impactful service,” she said.

The lecture attracted academics, industry professionals, students and stakeholders from Nigeria’s power sector, providing a platform for robust discussions on electricity sector reforms, innovation and the critical role of engineering in driving the country’s economic development.