By Godswill MichaelThe Federal Government has demanded a legal justification from the National Insurance Commission (NAICOM) for its assessment and demand for a one per cent capital injection fee from insurance companies participating in the ongoing industry recapitalisation exercise. The Permanent Secretary, Federal Ministry of Finance, Raymond Omachi, conveyed the demand in a letter dated August 6, 2026, addressed to the Commissioner for Insurance, NAICOM. In the letter, the ministry asked the commission to provide a “detailed response and legal justification” for the issues raised by the two insurance companies. The petitioners also challenged NAICOM’s directive requiring existing operational insurance companies to transfer their entire capital injection funds into an escrow account with the CBN. The companies said the amounts exceeded their adjusted recapitalisation requirements of ₦16 billion for NICON and ₦28 billion for Nig Re.