Court fixes Sept 21 to hear motion for winding up of NICON Insurance
Federal High Court Schedules Hearing for NICON Insurance Liquidation Petition
By Ikechukwu Nnochiri
The Federal High Court in Abuja has set September 21 for a hearing concerning a petition aimed at formally liquidating NICON Insurance Limited following the cancellation of its operating license.
Justice Chigozie Onah, while scheduling the hearing, issued a directive to preserve the assets, properties, investments, bank accounts, records, and other interests of NICON Insurance. This order is intended to protect these assets from any unauthorized transactions that may conflict with the responsibilities of the Receiver/Provisional Liquidator and the rights of policyholders, creditors, and other stakeholders until the matter is resolved in court.
The petition, designated FHC/ABJ/PET/18/2026, was filed by Mr. Chukwuma-Machukwu Ume, SAN, who has been appointed as the Receiver/Liquidator for NICON Insurance Limited. The court has permitted the petition to be considered during its annual vacation.
In compliance with the court’s order, Ume has issued public notices in national newspapers to inform stakeholders, including banks, financial institutions, regulatory agencies, and the general public, about the liquidation proceedings involving NICON Insurance Limited.
The petition was submitted on August 12, following the National Insurance Commission’s (NAICOM) invalidation of NICON’s insurance license on August 3, 2026. The basis for the winding-up request is that NICON failed to recapitalize as required under the Nigerian Insurance Industry Reform Act of 2025 and did not meet the minimum capital standards set by NAICOM.
Ume informed the court that the cancellation of NICON’s license eliminated the regulatory foundation necessary for the company to function as an insurer. He emphasized that the request for liquidation is grounded in statutory requirements governing insurance companies whose licenses have been revoked, rather than solely on grounds of insolvency.
The petition further notes that NICON has numerous policyholders and substantial creditors, including banks, vendors, and contractors, with liabilities amounting to hundreds of billions of naira.
Ume urged the court to implement the statutory process of winding up to ensure the appropriate management and distribution of NICON’s assets in accordance with legal priorities. He also requested the court to affirm his role as liquidator and compel NICON’s directors, officers, and agents to relinquish the company’s financial records and assets as mandated by law.
Additionally, the petitioner seeks to ensure that the statutory priorities applicable to defunct insurance firms under the Nigerian Insurance Industry Reform Act are adhered to in the settlement and distribution of the company’s estate.
