NEWS
NAICOM Revokes NICON’s Licence, Appoints Receiver to Take Over Company
Nigeria’s insurance industry has been thrown into a major regulatory shake-up following the revocation of the operational licence of the National Insurance Corporation of Nigeria (NICON), one of the country’s oldest and biggest insurance companies.
The National Insurance Commission (NAICOM), Nigeria’s insurance regulatory authority, revoked NICON’s operational licence after the company repeatedly failed to meet prescribed regulatory requirements.
NICON, owned by the Federal Government and established in 1969 under Decree 2, operated under licence number RIC-049 before the regulator cancelled its authorisation to conduct insurance business.
Following the revocation, NAICOM appointed Senior Advocate of Nigeria (SAN), Chukwuma-Machukwu Ume, as Receiver and Provisional Liquidator of the company.
The appointment effectively removes the management of NICON from the normal course of business and places the company’s affairs, assets and records under the control of the appointed Receiver and Provisional Liquidator.
Receiver Moves to Protect NICON Assets:
In an immediate move aimed at safeguarding NICON’s assets and preventing unauthorised transactions, the Receiver and Provisional Liquidator issued a public notice to policyholders, creditors, business partners, federal and state governments, the Federal Capital Territory Administration and land registries.
The notice directs all parties dealing with the company to channel matters relating to NICON’s affairs, assets and business to the Receiver and Liquidator.
It further warns that transactions, contracts, commitments or other dealings purportedly entered into on behalf of NICON, now in liquidation, will not be recognised or honoured unless ratified by the Receiver and Liquidator.
The development is expected to pave the way for a detailed assessment of the company’s financial position, including the identification of its assets, liabilities, outstanding obligations and legitimate claims.
The Receiver is also mandated to secure NICON’s properties and records, establish the company’s liabilities and supervise the winding-up process in accordance with applicable laws.
Recapitalisation Rules Trigger Action:
NAICOM’s decision is linked to the implementation of new minimum capital requirements introduced as part of reforms under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Insurance operators were required to meet the revised capital thresholds within the stipulated recapitalisation period or risk losing their operational licences.
NICON was among the operators that failed to satisfy the prescribed requirements within the deadline, leading to the cancellation of its licence.
The regulator’s latest action underscores its determination to enforce the new capitalisation regime and strengthen the financial foundation of Nigeria’s insurance sector.
Policyholders and Creditors in Focus:
With NICON now under the control of a Receiver and Provisional Liquidator, considerable attention will shift to policyholders, creditors and other stakeholders who have outstanding financial interests in the company.
A key part of the process will involve verifying legitimate claims and liabilities before determining how lawful obligations will be settled.
The Receiver is also expected to work closely with NAICOM on issues arising from the liquidation and provide periodic reports on the progress of the exercise.
The intervention is designed to prevent further unauthorised dealings with NICON’s assets while ensuring that any transactions carried out during the liquidation process are properly controlled.
For the insurance industry, the appointment of a Receiver and Provisional Liquidator represents a significant regulatory intervention, as it places the affected company’s assets and affairs under an independent officer charged with preserving and realising those assets for the settlement of lawful obligations.
NAICOM Defends Tougher Capital Requirements:
NAICOM has maintained that enforcement of the recapitalisation requirements is intended to improve the financial strength and resilience of Nigeria’s insurance industry.
The regulator’s position is that only operators with sufficient financial capacity should remain in business, particularly as the industry seeks to build greater confidence among policyholders and investors.
The commission recently announced that 43 reinsurance companies had successfully met the new minimum capital requirements at the conclusion of the recapitalisation exercise.
The NICON development therefore marks one of the most significant consequences of the industry’s ongoing capital reform, with the company’s future now placed firmly in the hands of the Receiver and Provisional Liquidator as the liquidation process unfolds.