Nigeria’s Insurance industry is witnessing the end of an era as the National Insurance Commission, NAICOM revokes the operating licence of NICON Insurance Limited, one of the country’s oldest and once largest insurance companies.
The regulator says the action followed the company’s failure to meet prescribed regulatory requirements, particularly the new minimum capital threshold introduced under the Nigerian Insurance Industry Reform Act 2025.
For more than five decades, NICON Insurance stood as a major player in Nigeria’s insurance landscape.
Established in 1969, the company was created by the Federal Government and grew into a dominant insurer, particularly in underwriting government assets and large corporate risks.
But over the years, NICON’s fortunes declined amid ownership changes, financial challenges and regulatory pressures.
The latest setback came during the industry-wide recapitalisation exercise introduced by NAICOM to strengthen insurance companies and improve their capacity to meet obligations.
Under the new framework, insurers were required to raise additional capital and meet higher minimum requirements within the stipulated deadline.
Operators that failed to comply faced possible sanctions, including licence cancellation.
NAICOM says NICON did not satisfy the required conditions, leading to the cancellation of its Certificate of Registration, RIC-049, and the appointment of a Receiver and Provisional Liquidator, Chukwuma-Machukwu Ume, SAN.
The receiver is now responsible for taking control of the company’s affairs, securing its assets, determining liabilities and overseeing the winding-up process.
Policy holders, creditors, business partners and government institutions have been directed to channel all matters concerning NICON through the receiver’s office.
The revocation marks a significant moment for Nigeria’s insurance sector, as regulators intensify efforts to ensure only financially sound operators remain in the market.
For customers and creditors, attention now turns to how the liquidation process will 1protect legitimate claims and settle outstanding obligations.
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(Editor: Anoyoyo Ogiagboviogie)
