Following the failure of NICON Insurance Limited’s management to raise the minimum capital requirement for the risk underwriting entity’s licence category, the National Insurance Commission (NAICOM), the insurance industry regulator, has commenced the formal winding-up of the entity.
Consequently, the commission has appointed Chukwuma-Machukwu Ume, 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.
Specifically, the industry regulatory had 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.
NAICOM’s decision followed its 3 August communication to the company’s board, in which it cited NICON’s failure to satisfy the minimum capital requirement applicable to its category of insurance licence to justify its decision as provided for in the NIIRA 2025 and other applicable regulatory provisions.
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The Receiver/Provisional Liquidator hinted about his appointment in a public notice dated 4 August, confirming that the industry regulatory commission engaged him under the provisions of the Nigerian Insurance Industry Reform Act, 2025, to commence the winding-up process.
Based on the provisions of the law, as Receiver/Provisional Liquidator is mandated to identify, recover, secure, take possession of NICON Insurance’s assets and facilitate the transfer of NICON’s life insurance portfolio to another licensed life insurer, subject to the approval of NAICOM.
In addition, the Receiver/Provisional Liquidator will also undertake the verification and settlement of the company’s legitimate liabilities in accordance with the provisions of the law.
In line with his mandate, Ume has directed individuals, policyholders, businesses and other entities with claims against NICON Insurance to provide documentary evidence and details supporting their claims, adding that the verification exercise will help establish the company’s outstanding obligations and determine legitimate claims for settlement under the applicable liquidation framework.
This is even as he disclosed that 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.
