Nigeria’s biggest insurance firm, NICON loses licence

Nigeria's largest insurance company, National Insurance Corporation of Nigeria, commonly known as NICON, has lost its operational license and has been taken over by a Receiver Manager. The National Insurance Commission, NAICOM, the insurance regulatory body, revoked NICON's license, which was established in 1969 under Decree 2. The license, marked RIC - 049, was cancelled due to NICON's persistent failure to meet regulatory requirements.

Following the revocation, NAICOM appointed Chukwuma-Machukwu Ume, a Senior Advocate of Nigeria, as Receiver and Provisional Liquidator of the company. The Receiver Manager has informed policy-holders, creditors, business partners, federal and state governments, the FCT, and land registries that they should direct all matters related to NICON to the appointed individuals.

Transactions, contracts, and other dealings purporting to be on behalf of NICON will not be honored without the Receiver and Liquidator's approval. This development marks the transfer of control of NICON's affairs to the Receiver and Provisional Liquidator, who is responsible for securing the company's assets, determining its liabilities, and overseeing the liquidation process in line with the law.

NAICOM's action against NICON is part of the regulator's enforcement of the new capital requirements introduced by the Nigerian Insurance Industry Reform Act (NIIRA) 2025. Operators were required to meet the new minimum capital requirements within the stipulated recapitalization period, or have their licenses revoked. NICON was among the operators that failed to satisfy these requirements on time, leading to the cancellation of its license.