The National Insurance Commission (NAICOM) has canceled the operating license of NICON Insurance Limited and appointed Nigeria’s Senior Counsel, Chukwuma Machukwu Ume, as interim liquidator/receiver of the company.
The regulatory action involves the cancellation of the company’s Registration Certificate, RIC-049, after it failed to comply with prescribed regulatory requirements.
Subsequently, the Interim Receiver/Liquidator issued a public notice directing policyholders, creditors, business partners as well as federal, state and FCT governments and property registries to channel all matters relating to the affairs, assets and business of NICON Insurance Limited (in liquidation) to his office.
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The notice also warned that transactions, contracts, commitments or other dealings purportedly entered into on behalf of NICON Insurance Limited (in liquidation) would not be recognized or honored without ratification by the Receiver/Liquidator.
The development effectively transfers control of the company’s affairs to the appointed Receiver/Interim Liquidator, who is expected to secure its assets and records, establish its liabilities and oversee the liquidation of its operations in accordance with applicable laws.
NAICOM’s action is linked to the implementation of new capital requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The commission had directed insurance operators to meet the revised minimum capital requirements within the stipulated recapitalization period.
NICON Insurance was among the operators who failed to meet the prescribed requirements within the regulatory deadline, resulting in the cancellation of its licence.
With the appointment of the Receiver/Interim Liquidator, the next stage will involve taking control of the company’s assets and records, determining legitimate liabilities and ensuring that the liquidation process is carried out in an orderly manner.
The Receiver is also expected to communicate with NAICOM on matters arising from the liquidation and submit regular reports on the progress of the process.
The liquidation exercise is expected to focus on protecting the interests of policyholders, creditors and other stakeholders, particularly through verification and settlement of legitimate claims and obligations.
The appointment of an Interim Receiver/Liquidator constitutes a significant regulatory intervention as it removes the affairs of the affected company from normal management and places them under the control of an officer charged with preserving and realizing its assets for the settlement of legal obligations.
The measure also aims to prevent unauthorized transactions in the company’s assets and ensure that transactions carried out during the liquidation process are adequately controlled.
NAICOM has maintained that the application of recapitalization requirements is intended to strengthen the financial capacity of the insurance industry and ensure that only adequately capitalized operators remain in business.
The commission recently announced that 43 insurance and reinsurance companies had successfully met the new minimum capital requirements at the end of the recapitalization exercise.
Therefore, the cancellation of NICON Insurance’s license marks the beginning of the formal process of winding up the company’s businesses, subject to applicable legal and regulatory procedures..
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