NAICOM Revokes NICON Insurance Operating Licence, Court Fixes Date
- NAICOM cancelled NICON Insurance's operating licence on August 3, 2026, after the company failed to meet new recapitalisation requirements
- A Federal High Court in Abuja received a winding-up petition on August 12, with Justice Onah fixing September 21 for the hearing
- NICON's policyholders number in the hundreds of thousands, with creditor liabilities running into hundreds of billions of naira
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian
A Federal High Court in Abuja has scheduled September 21, 2026, as the date for hearing a petition to wind up NICON Insurance Limited, weeks after Nigeria's insurance regulator revoked the company's operating licence.
Justice Chigozie Sergius Onah fixed the date after the winding-up petition, marked FHC/AB3/PET/18/2026, was filed on August 12, 2026, by Chukwuma-Machukwu Ume, SAN, who was appointed Receiver and Provisional Liquidator of NICON following the National Insurance Commission's (NAICOM) decision on August 3 to cancel the firm's Certificate of Registration, RIC-049.
Source: Twitter
Why NAICOM Cancelled NICON's Licence
NAICOM revoked the licence after NICON failed to meet the minimum capital requirements set under the Nigerian Insurance Industry Reform Act 2025.
Insurers across the country were required to raise additional capital within a set deadline as part of an industry-wide recapitalisation exercise aimed at strengthening the sector. Companies that missed the mark faced regulatory sanctions, including licence cancellation.
Ume told the court that the revocation removed the legal basis for NICON to continue functioning as an insurer and that the winding-up application rests on the statutory framework governing cancelled insurance operators rather than on an insolvency allegation alone.
He said NICON's creditors include banks, vendors and contractors, with total liabilities running into hundreds of billions of naira, and that the company has hundreds of thousands of policyholders.
The petition draws on Sections 110 and 111 of the Nigerian Insurance Industry Reform Act 2025, alongside relevant provisions of the Companies and Allied Matters Act 2020.
Ume is also asking the court to confirm his appointment as liquidator and to direct NICON's directors, officers and agents to surrender all company records, assets and statements of affairs, the Guardian reports.
Court Orders Assets Preserved
Justice Onah granted leave for the petition to be listed during the court's 2026 annual vacation and issued an order freezing NICON's assets, bank accounts, properties and investments against any disposal or encumbrance.
The preservation order is designed to protect policyholders, creditors and other stakeholders while the petition is pending.
Following the court's August 27 directive, Ume served and advertised the winding-up petition in line with the Companies Winding-Up Rules and placed public notices in national newspapers to alert banks, regulatory bodies and the general public about the ongoing liquidation.
Source: Facebook
NICON's Rise and Fall
Founded in 1969 by the Federal Government, NICON Insurance spent decades as one of Nigeria's largest underwriters, handling major government and corporate risks.
Its fortunes deteriorated over the years due to ownership changes and mounting financial pressures, and the latest recapitalisation drive delivered the final regulatory blow.
The September 21 hearing will determine the formal winding-up process and how the company's remaining assets are distributed among policyholders and creditors under the statutory priority framework.
Insurance company shuts down office
Earlier, Legit.ng reported that the NAICOM has revoked the operating licence of Nigeria Reinsurance Corporation, citing the company's failure to meet the minimum capital threshold required for reinsurers operating in the country.
The commission invoked its powers under the Nigerian Insurance Industry Reform Act 2025 after the company did not meet the statutory recapitalisation deadline set by the regulator.
The cancellation of its certificate of registration.
Source: Legit.ng
