NAICOM cancels NICON operating licence, appoints Ume receiver/liquidator

The National Insurance Commission (NAICOM) has cancelled the operating licence of the NICON Insurance Limited, the Certificate of Registration of NICON Insurance Co. Ltd RIC – 049 and appointed Chukwuma Machukwu Ume, SAN, as Receiver/Provisional Liquidator of the company.

The cancellation of the insurance company operating licence and its registration by the insurance regulator was as a result of its failure to meet the prescribed regulatory requirements

Subsequent upon the development, the receiver/provisional liquidator  has issued public notice notifying policyholders, creditors, business partners, federal, states and FCT and land registries to direct matters concerning the  affairs, assets and business of NICON Insurance limited (In-Liquidation) to his office.

The notification warned that transaction 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 re-capitalisation 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.