Recapitalisation: Former Insurance Commissioner Advises FG to Shun Favouritism, Give Fair Play a Chance

Alhaji Mohammed Kari, a former Commissioner for Insurance in Nigeria, has urged the federal government to resist favoritism and ensure a level playing field in the ongoing recapitalization of the insurance sector. Kari, who previously led the National Insurance Commission (NAICOM), emphasized that fair play is crucial for the sector's growth and its ability to compete internationally.

In an open letter to the Minister of Finance, Kari advised the government against granting special exemptions or acting as an informal appeals court for struggling insurance operators. He stressed that NAICOM, as the empowered regulator, must be allowed to enforce the law uniformly across all companies, regardless of their ownership structure or history.

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Honourable Minister, Nigeria’s insurance sector has enormous untapped potential, but it can only realise that potential if the government allows a level playing field to flourish.

Kari highlighted Nigeria's insurance sector's vast untapped potential, stating it can only be realized if the government permits a competitive environment. He believes that by upholding regulatory integrity and refusing to shield non-compliant companies, the Ministry of Finance can project an image of financial discipline, thereby building global confidence in the Nigerian insurance market.

The former commissioner's advice follows a petition by the owner of NICON Insurance Ltd and Nigeria Reinsurance Corporation concerning the withdrawal of their operating licenses due to failure to meet minimum capital requirements. This situation prompted the Minister of Finance to halt NAICOM's planned appointment of liquidators for both companies. Kari argued that consistent standards are essential for building a self-reliant, well-capitalized insurance market, and questioned whether the rules should apply universally.

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The central issue here is not whether statutory requirements feel inconvenient or demanding to any individual operator; financial regulations, by their very nature, impose rigorous demands. The fundamental question is simply this: are the rules applicable to everybody?