National Insurance Commission (NAICOM) has cancelled the operating licence of NICON Insurance Limited and appointed Senior Advocate of Nigeria, Chukwuma Machukwu Ume, as Receiver/Provisional Liquidator of the company.
The regulatory action involves the cancellation of the company’s Certificate of Registration, RIC-049, following its failure to meet prescribed regulatory requirements.
The Receiver/Provisional Liquidator has subsequently issued a public notice directing policyholders, creditors, business partners, as well as the Federal, state and FCT governments and land registries to channel all matters relating to the affairs, assets and business of NICON Insurance Limited (In-Liquidation) to his office.
The notice also warned that transactions, contracts, commitments or other dealings purportedly undertaken on behalf of NICON Insurance Limited (In-Liquidation) would not be recognised or honoured without the ratification of the Receiver/Liquidator.
The development effectively transfers control of the company’s affairs to the appointed Receiver/Provisional Liquidator, who is expected to secure its assets and records, establish its liabilities and oversee the winding-up of its operations in accordance with applicable laws.
NAICOM’s action is linked to the enforcement of the new capital requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The commission had directed insurance operators to meet the revised minimum capital requirements within the stipulated recapitalisation period.
NICON Insurance was among the operators that failed to satisfy the prescribed requirements within the regulatory deadline, leading to the cancellation of its licence.
With the appointment of the Receiver/Provisional Liquidator, the next stage will involve taking control of the company’s assets and records, determining legitimate liabilities and ensuring that the winding-up process is conducted in an orderly manner.
The Receiver is also expected to liaise with NAICOM on matters arising from the liquidation and submit periodic reports on the progress of the process.
The liquidation exercise is expected to focus on protecting the interests of policyholders, creditors and other stakeholders, particularly through the verification and settlement of legitimate claims and liabilities.
The appointment of a Receiver/Provisional Liquidator constitutes a significant regulatory intervention, as it removes the affected company’s affairs from normal management and places them under the control of an officer mandated to preserve and realise its assets for the settlement of lawful obligations.
The move is also intended to prevent unauthorised dealings in the company’s assets and ensure that transactions carried out during the liquidation process are properly controlled.
NAICOM has maintained that enforcement of the recapitalisation requirements is aimed at strengthening the financial capacity of the insurance industry and ensuring that only adequately capitalised operators remain in business.
The commission recently announced that 43 insurance and reinsurance companies had successfully met the new minimum capital requirements at the end of the recapitalisation exercise.
The cancellation of NICON Insurance’s licence therefore marks the commencement of the formal process of winding up the company’s affairs, subject to applicable legal and regulatory procedures.