NAICOM Revokes NICON Insurance Licence, Appoints Receiver to Oversee Liquidation

Nigeria’s biggest insurance firm, the National Insurance Corporation of Nigeria (NICON), has lost its operational licence following its failure to meet the new capital requirements mandated by the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

The National Insurance Commission (NAICOM), Nigeria’s regulatory body, revoked the licence of the government-owned company, which was established in 1969 by Decree 2. Following the cancellation of licence RIC-049, NAICOM appointed Chukwuma-Machukwu Ume, a Senior Advocate of Nigeria (SAN), as the Receiver and Provisional Liquidator.

In a move to secure the company’s assets and protect the interests of stakeholders, the Receiver has issued a public notice. He has instructed policy-holders, creditors, business partners, and government entities to direct all matters regarding NICON’s assets and business affairs exclusively to his office. The notice explicitly warns that any transactions or commitments made on behalf of NICON while in liquidation will not be honoured unless ratified by the Receiver and Liquidator.

This regulatory intervention effectively strips the company’s management of control, shifting authority to the Receiver. His mandate is to secure assets, identify liabilities, and oversee an orderly winding-up process in accordance with the law. He is also required to maintain close liaison with NAICOM and submit periodic reports on the liquidation progress.

NAICOM’s action is part of a broader enforcement of the NIIRA 2025, which requires all insurance operators to meet new minimum capital thresholds. While 43 reinsurance companies have successfully met these requirements, NICON failed to satisfy the conditions within the stipulated recapitalisation period.

The regulator stated that this enforcement is intended to strengthen the financial stability of the Nigerian insurance industry, ensuring that only adequately capitalised firms continue to operate. The current focus remains on the verification and settlement of legitimate claims and liabilities for policy-holders and creditors.