NAICOM begins NICON Insurance wind-up, appoints receiver

The National Insurance Commission has commenced the formal winding-up of NICON Insurance Limited following the cancellation of the insurer’s registration over its failure to meet the minimum capital requirement for its licence category.

The commission appointed Chukwuma-Machukwu Ume, SAN, as Receiver/Provisional Liquidator to take control of the company’s assets, manage its outstanding obligations and oversee the transfer of its life insurance portfolio to another insurer.

NAICOM cancelled NICON Insurance’s certificate of registration with effect from 3 August, 2026, after the company failed to comply with the prescribed minimum capital requirement within the period allowed by the regulator.

Ume disclosed his appointment in a public notice dated 4 August, stating that NAICOM engaged him under the provisions of the Nigerian Insurance Industry Reform Act, 2025, to commence the winding-up process.

As Receiver/Provisional Liquidator, Ume is mandated to identify, recover, secure and take possession of NICON Insurance’s assets as part of efforts to establish the company’s financial position.

He is also expected to facilitate the transfer of NICON’s life insurance portfolio to another licensed life insurer, subject to the approval of NAICOM.

The receiver will equally undertake the verification and settlement of the company’s legitimate liabilities in accordance with the provisions of the law.

As part of the process, Ume has directed individuals, policyholders, businesses and other entities with claims against NICON Insurance to provide documentary evidence and details supporting their claims.

The claims verification exercise is expected to help establish the company’s outstanding obligations and determine legitimate claims for settlement under the applicable liquidation framework.

Ume also said steps were being taken to address the interests and entitlements of NICON Insurance employees in line with the relevant laws and procedures governing the liquidation.

NAICOM’s decision followed its 3 August communication to the company’s board, in which the regulator cited NICON’s failure to satisfy the minimum capital requirement applicable to its category of insurance licence.

The commission said the cancellation was carried out under the powers granted to it by the NIIRA 2025 and other applicable regulatory provisions.

Following the cancellation, NAICOM instructed the Receiver/Provisional Liquidator to begin the process of winding up the insurer’s affairs, including the management of its assets and liabilities.