Nigeria’s biggest insurance firm, NICON loses license, taken over by receiver manager
NICON Loses Operational License, Receiver Manager Appointed
The National Insurance Corporation of Nigeria (NICON), the country’s largest insurance firm, has had its operational license revoked and is now under the management of a Receiver Manager. The National Insurance Commission (NAICOM), Nigeria’s insurance regulatory body, announced the decision following NICON’s ongoing failure to comply with regulatory requirements.
Established by decree in 1969, NICON was owned by the Federal Government and held operational license RIC-049. The revocation came after the company did not meet new capital requirements mandated under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which stipulated that insurance operators must achieve minimum capital thresholds within designated timeframes.
In response to the license revocation, NAICOM has appointed Chukwuma-Machukwu Ume, a Senior Advocate of Nigeria (SAN), as the Receiver and Provisional Liquidator. Ume’s role will be crucial in protecting the company’s assets and overseeing its winding-up process.
To begin this process, the Receiver Manager issued a public notice advising policyholders, creditors, and business partners to direct all matters related to NICON’s affairs to his office. The notice emphasized that any transactions, contracts, or commitments made purportedly on behalf of NICON will not be honored without the Receiver’s approval.
The transition places the management of NICON’s operations under Ume’s authority, as he works to secure assets, ascertain liabilities, and ensure compliance with legal requirements throughout the liquidation process. The priority will be to safeguard the interests of policyholders and creditors during this transition.
The regulatory intervention by NAICOM reflects its commitment to reinforcing the capital framework of the insurance sector, ensuring that only sufficiently capitalized companies remain operational. Meanwhile, the commission reported that 43 reinsurance companies have successfully met the new capital requirements as the recapitalization exercise concluded.
