The National Insurance Commission (NAICOM) has revoked the operational licence of NICON Insurance Plc, citing the company’s failure to meet prescribed regulatory requirements.
NICON, which is owned by the Federal Government and was established in 1969 under Decree 2, had its operational licence, RIC-049, cancelled by the insurance regulator.
Following the revocation, NAICOM appointed Senior Advocate of Nigeria (SAN), Chukwuma-Machukwu Ume, as Receiver and Provisional Liquidator of the company.
The appointment effectively transfers control of NICON’s affairs and assets to the Receiver and Provisional Liquidator, who is responsible for securing the company’s properties and records, determining its liabilities and overseeing the winding-up process in accordance with the law.
In a public notice, the Receiver Manager and Provisional Liquidator directed NICON’s policyholders, creditors, business partners, government institutions and land registries to channel all matters relating to the company’s business, assets and affairs through its office.
The notice warned that transactions, contracts, commitments or other dealings purportedly entered into on behalf of NICON, now in liquidation, would not be recognised unless they were ratified by the Receiver and Liquidator.
The move is intended to prevent unauthorised transactions involving the company’s assets and ensure that all dealings during the liquidation process are properly controlled.
The Receiver is also expected to work with NAICOM on matters arising from the liquidation and provide periodic reports on the progress of the exercise.
NAICOM’s action followed the enforcement of new minimum capital requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Insurance operators were required to meet the new capital thresholds within the stipulated recapitalisation period, with failure to comply exposing them to regulatory sanctions, including licence revocation.
NICON was among the operators that failed to satisfy the prescribed requirements by the deadline, leading to the cancellation of its operational licence.
The liquidation process is expected to focus on identifying the company’s assets and legitimate liabilities, while also addressing outstanding obligations to policyholders, creditors and other stakeholders.
In particular, the Receiver and Provisional Liquidator will be responsible for verifying legitimate claims and facilitating their settlement in line with applicable legal procedures.
NAICOM said the recapitalisation exercise is aimed at strengthening the financial capacity of the insurance industry and 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 at the end of the recapitalisation exercise.
