The National Insurance Corporation of Nigeria (NICON), one of Nigeria’s major insurance companies, has lost its operational licence following regulatory action by the National Insurance Commission (NAICOM).
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NAICOM revoked NICON’s licence, identified as RIC-049, after the company failed to meet prescribed regulatory requirements.
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Following the revocation, the commission appointed Senior Advocate of Nigeria, Chukwuma-Machukwu Ume, as Receiver and Provisional Liquidator to take control of the company’s affairs.
NICON was established in 1969 by Decree 2 and is owned by the Federal Government. The latest development means that its operations will now be managed under the direction of the appointed Receiver and Provisional Liquidator.
Following his appointment, the Receiver issued a public notice to policyholders, creditors, business partners, government authorities and land registries, directing them to channel matters relating to NICON’s assets, liabilities and business activities through his office.
The notice also stated that transactions, contracts, commitments or other dealings carried out on behalf of NICON in liquidation would not be recognised unless they were approved by the Receiver and Liquidator.
The takeover is intended to protect the company’s assets and records, determine its outstanding liabilities and ensure that the winding-up process is carried out in line with the law.
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The Receiver is also expected to work with NAICOM throughout the liquidation process and provide regular reports on developments.
The regulatory action followed NICON’s failure to meet the new minimum capital requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
NAICOM had directed insurance companies to meet the new capital thresholds within the period allowed for recapitalisation. Operators that failed to meet the requirements risked losing their licences.
NICON was among the companies that did not meet the prescribed requirements before the deadline, leading to the cancellation of its operating licence.
The liquidation process will now focus on identifying legitimate claims and liabilities, protecting company assets and determining how lawful obligations to policyholders, creditors and other stakeholders will be addressed.
The appointment of a Receiver and Provisional Liquidator also prevents unauthorised persons from continuing to conduct business or dispose of company assets on behalf of NICON without proper approval.
NAICOM said the recapitalisation exercise is aimed at improving the financial strength of Nigeria’s insurance industry and ensuring that operators have adequate capital to remain in business.
The commission recently disclosed that 43 reinsurance companies had successfully met the new minimum capital requirements at the end of the recapitalisation exercise.
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