The National Insurance Commission (NAICOM) has cancelled the operating licence NICON Insurance Limited, that is the certificate of Registration of NICON Insurance Co.Ltd RIC – 049 and appointed a Senior Advocate of Nigeria (SAN), Chukwuma -.Machukwu Ume as Receiver/Provisional Liquidator of the company.
The cancellation of the insurance company operating licence and it’s registration by the insurance regulator (NAICOM ) follows its failure to meet the prescribed regulatory requirements
Receiver/Provisional Liquidator has issued public notice notifying policyholders , creditors, business partners, Federal,States and FCT and land registries to direct matters concerning the the affairs, assets and business of NICON Insurance limited (In-Liquidation) to his office.
The Notification warned that transactions contracts, commitments or other dealings, purportedly undertaken on behalf of NICON Insurance company (In-Liquidation) would not be honoured without the ratification of Receiver/Liquidator.
The development effectively transfers the control of the company’s affairs to the appointed Receiver/Provisional Liquidator, who is expected to secure the company’s assets, establish its liabilities and oversee the process of winding up its operations in accordance with the law.
NAICOM’s action is part of the regulator’s enforcement of the new capital requirements introduced under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The Commission had required insurance operators to meet the new minimum capital requirements within the stipulated recapitalisation period.
NICON Insurance was among operators that failed to satisfy the prescribed requirements within the regulatory deadline, resulting in the cancellation of its licence.
With the appointment of the Receiver/Provisional Liquidator, the next phase will focus on taking control of the company’s assets and records, identifying legitimate liabilities and ensuring that the winding-up process is conducted in an orderly manner.
The Receiver is also expected to liaise with NAICOM on matters arising from the liquidation and submit periodic reports on the progress of the process.
The development places the interests of policyholders, creditors and other stakeholders at the centre of the liquidation exercise, particularly the verification and settlement of legitimate claims and liabilities.
The appointment of a Receiver/Provisional Liquidator is a significant regulatory intervention because it removes the management of the affected company from the normal course of business and places its affairs under the control of an officer charged with preserving and realising its assets for the purpose of settling lawful obligations.
The move is also expected to prevent unauthorised dealings with the company’s assets and ensure that transactions undertaken during the liquidation process are properly controlled.
NAICOM has maintained that the enforcement of the recapitalisation requirements is aimed at strengthening the financial capacity of the insurance industry and ensuring that only adequately capitalised operators remain in business.
The regulator recently announced that 43 insurance and reinsurance companies had successfully met the new minimum capital requirements at the end of the recapitalisation exercise.
The NICON development therefore signals the beginning of the formal process for bringing the company’s affairs to an end, subject to the applicable legal and regulatory procedures
