Nigeria’s largest insurance company, the National Insurance Corporation of Nigeria (NICON), has had its operating licence revoked and has been placed under the control of a Receiver Manager.
The National Insurance Commission (NAICOM), Nigeria’s insurance industry regulator, cancelled NICON’s licence. The company, which is owned by the Federal Government, was established in 1969 through Decree 2.
NICON’s operating licence, identified as RIC – 049, was revoked after the company repeatedly failed to comply with regulatory requirements set by NAICOM.
Following the licence cancellation, NAICOM appointed Senior Advocate of Nigeria (SAN), Chukwuma-Machukwu Ume, as the company’s Receiver and Provisional Liquidator.
To protect NICON’s assets and properties, the Receiver Manager and Provisional Liquidator issued a public notice directing policyholders, creditors, business associates, federal and state governments, the FCT and relevant land registries to channel all matters relating to the company’s business, affairs and assets through the appointed receiver.
The notice cautioned that any transactions, agreements, obligations or other dealings allegedly entered into on behalf of NICON, being In-Liquidation, would not be recognised unless they received approval from the Receiver and Liquidator.
The appointment effectively places the management and affairs of NICON under the Receiver and Provisional Liquidator, whose responsibilities include securing the company’s assets, determining its outstanding liabilities and supervising the lawful winding-up of its operations.
NAICOM’s decision forms part of its enforcement of new minimum capital requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Insurance companies were required by the commission to satisfy the revised capital thresholds within the prescribed recapitalisation period, failing which their operating licences could be revoked.
NICON Insurance was among the companies that did not meet the required threshold before the deadline, leading to the withdrawal of its licence.
The Receiver Manager and Provisional Liquidator will now concentrate on securing NICON’s assets and records, determining legitimate liabilities and ensuring that the winding-up process proceeds in an orderly and lawful manner.
The Receiver is also expected to work with NAICOM on issues arising from the liquidation and provide periodic updates on the progress of the exercise.
Policyholders, creditors and other stakeholders are central to the liquidation process, particularly with regard to verifying legitimate claims and settling recognised liabilities.
Within the insurance sector, the appointment of a Receiver and Provisional Liquidator represents a major regulatory intervention because it removes the affected company’s management from ordinary business operations and places its affairs under an appointed officer responsible for protecting and realising its assets to meet lawful obligations.
The intervention is also intended to prevent unauthorised transactions involving the company’s assets and ensure that all dealings during the liquidation process are properly supervised.
NAICOM stated that enforcing the recapitalisation requirements is designed to improve the financial strength of Nigeria’s insurance industry and ensure that only adequately capitalised operators continue to conduct business.
The regulator recently disclosed that 43 reinsurance companies had successfully fulfilled the new minimum capital requirements at the conclusion of the recapitalisation exercise.
