The National Insurance Corporation of Nigeria (NICON) has lost its operating licence after the National Insurance Commission (NAICOM) revoked its authorisation to conduct insurance business in Nigeria over failure to meet prescribed capital requirements.
NAICOM cancelled NICON’s operational licence, marked RIC 049, following the company’s inability to meet the new minimum capital requirements introduced as part of the ongoing reforms in the Nigerian insurance industry.
Following the revocation, the commission appointed Senior Advocate of Nigeria, Chukwuma Machukwu Ume, as Receiver and Provisional Liquidator to take control of NICON’s affairs and oversee the winding-up process.
The development effectively places NICON’s operations, assets and records under the control of the appointed Receiver and Provisional Liquidator as the company begins the process of liquidation.
In a public notice, the Receiver and Provisional Liquidator directed NICON’s policyholders, creditors, business partners, federal and state governments, the Federal Capital Territory Administration and relevant land registries to channel all matters relating to the company’s business and assets to his office.
He also warned that transactions, contracts, commitments or other dealings purportedly entered into on behalf of NICON, now in liquidation, would not be recognised unless they are ratified by the Receiver and Provisional Liquidator.
The Receiver is expected to secure NICON’s assets, take custody of its records, establish the company’s liabilities and oversee the orderly winding up of its affairs in accordance with the law.
He will also work with NAICOM on issues arising from the liquidation and submit periodic reports on the progress of the process.
The regulatory action is linked to the recapitalisation requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
NAICOM had directed insurance companies to meet new minimum capital requirements within the stipulated recapitalisation period, warning that operators that failed to comply risked losing their licences.
NICON was among the operators that failed to meet the prescribed requirements before the deadline, resulting in the cancellation of its operating licence.
With the liquidation process now underway, attention is expected to shift to the interests of policyholders, creditors and other legitimate stakeholders, particularly the verification and settlement of valid claims and outstanding liabilities.
The appointment of a Receiver and Provisional Liquidator is also intended to prevent unauthorised dealings with NICON’s assets while ensuring that the company’s properties and other resources are preserved and realised to meet lawful obligations.
NAICOM has maintained that the recapitalisation exercise is aimed at strengthening the financial position of Nigeria’s insurance industry and ensuring that only adequately capitalised operators remain in business.
The commission recently announced that 43 reinsurance companies had successfully met the new minimum capital requirements at the end of the recapitalisation exercise.
