NAICOM Revokes NICON’s Licence, Appoints Receiver to Wind Up Operations

Nigeria’s oldest insurance company, the National Insurance Corporation of Nigeria, NICON, has lost its operational licence and has been placed under a Receiver Manager.

The National Insurance Commission, NAICOM, revoked NICON’s licence marked RIC-049 on grounds of persistent failure to meet regulatory requirements.

Following the revocation, NAICOM has appointed Senior Advocate of Nigeria, SAN, Chukwuma-Machukwu Ume, as Receiver and Provisional Liquidator of the company.

In a public notice, the Receiver Manager notified policyholders, creditors, business partners, the federal and state governments, the FCT and all land registries to direct all matters concerning NICON’s affairs, assets and business to his office.

The notice warned that any transaction, contract, commitment or dealing purportedly undertaken on behalf of NICON “being In-Liquidation” would not be honoured without the ratification of the Receiver and Liquidator.

The appointment effectively transfers control of the company’s affairs to the Receiver, who is mandated to secure NICON’s assets, establish its liabilities and oversee an orderly winding-up in accordance with the law.

NAICOM said the action is part of the enforcement of the new minimum capital requirements introduced under the Nigerian Insurance Industry Reform Act, NIIRA 2025.

The commission had directed insurance operators to meet the new capital thresholds within the stipulated recapitalisation period or risk losing their licences.

NICON, owned by the Federal Government and established in 1969 by Decree 2, was among the operators that failed to meet the requirements before the deadline.

The regulator recently announced that 43 insurance and reinsurance companies successfully met the new minimum capital requirements at the close of the recapitalisation exercise.

*Focus on Claims and Asset Preservation*

With the appointment of the Receiver/Provisional Liquidator, priority will be placed on taking control of NICON’s assets and records, verifying legitimate liabilities and ensuring that policyholders and creditors are protected.

The Receiver is also expected to liaise with NAICOM on all matters arising from the liquidation and submit periodic reports on the progress of the process.

NAICOM said the enforcement is aimed at strengthening the financial capacity of the insurance industry and ensuring that only adequately capitalised operators remain in business.

Industry observers noted that the appointment of a Receiver/Provisional Liquidator is a major regulatory intervention. It removes management from the day-to-day running of the company and places its affairs under an officer charged with preserving and realising assets to settle lawful obligations, while preventing unauthorised dealings.