NAICOM revokes NICON’s licence, appoints Receiver Manager

The National Insurance Commission (NAICOM) has revoked the operational licence of the National Insurance Corporation of Nigeria (NICON) and appointed a Receiver Manager to take over the firm.

NICON, Nigeria’s largest insurer and a Federal Government-owned company established in 1969 by Decree 2, is now officially out of business.

NICON’s operational licence, marked RIC–049, was cancelled by NAICOM following the company’s persistent failure to meet prescribed regulatory requirements.

Following the revocation, NAICOM appointed a Senior Advocate of Nigeria (SAN), Chukwuma-Machukwu Ume, as the Receiver and Provisional Liquidator of the company.

The Receiver Manager and Provisional Liquidator has issued a public notice notifying policyholders, creditors, business partners, federal and state governments, the FCT, and land registries to direct all matters concerning the affairs, assets, and business of the company to his office.

The notice warned that transactions, contracts, commitments, or other dealings purportedly undertaken on behalf of NICON now in liquidation would not be honoured without the ratification of the Receiver and Liquidator.

This development effectively transfers control of the company’s affairs to the appointed Receiver and Provisional Liquidator, who is mandated to secure the company’s assets, establish its liabilities, and oversee the winding-up of its operations in accordance with the law.

NAICOM’s action against NICON is part of the regulator’s enforcement of the new capital requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

The commission required insurance operators to meet the new minimum capital thresholds within the stipulated recapitalisation period or risk having their operational licences revoked.

NICON Insurance was among the operators that failed to satisfy the prescribed requirements within the deadline, resulting in the cancellation of its licence.

With the appointment of the Receiver Manager and Provisional Liquidator, the focus is now on taking control of the company’s assets and records, identifying legitimate liabilities, and ensuring that the winding-up process is conducted smoothly. The Receiver is also expected to liaise with NAICOM on matters arising from the liquidation and submit periodic progress reports.

The development places the interests of policyholders, creditors, and other stakeholders at the centre of the exercise, particularly regarding the verification and settlement of legitimate claims.

In the insurance industry, appointing a Receiver/Provisional Liquidator is considered a significant regulatory intervention. It removes the management of the affected firm from regular business operations and places its affairs under the control of an officer charged with preserving and liquidating assets to settle lawful obligations.

The move also prevents unauthorised dealings with company assets, ensuring that all transactions during the liquidation process remain strictly controlled.

NAICOM maintained in a statement that enforcing recapitalisation requirements aims to strengthen the financial capacity of the insurance sector, ensuring that only adequately capitalised operators remain in business.

The regulator recently announced that 43 reinsurance companies had successfully met the new minimum capital requirements by the close of the recapitalisation exercise.