• NICON insists it remains going concern, alleges ‘fake and fraudulent’ recapitalisation exercise
James Emejo in Abuja
National Insurance Commission (NAICOM) has revoked the operating licence of NICON Insurance Limited and appointed a Receiver/Provisional Liquidator to take control of the company’s affairs, assets, and liabilities.
However, in a twist, NICON rejected the regulatory action, describing the recapitalisation exercise that preceded the licence cancellation as “fake and fraudulent” and insisting that it remains in business as a going concern.
The development opens a fresh legal and regulatory dispute between the insurance company and its regulator, with NICON disclosing that the issues surrounding the action are already before the Federal High Court in Abuja.
NAICOM revoked NICON’s Certificate of Registration, RIC-049, following the company’s alleged failure to meet the prescribed minimum capital requirements within the stipulated recapitalisation period under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Following the licence cancellation, the commission reportedly appointed Chukwuma-Machukwu Ume (SAN) as Receiver/Provisional Liquidator of the company.
The appointment effectively transferred control of NICON’s affairs to the receiver, who was expected to secure the company’s assets and records, establish its liabilities, verify legitimate claims, and oversee the winding-up process in accordance with the law.
In a public notice, the receiver directed NICON’s policyholders, creditors, business partners, federal and state governments, the Federal Capital Territory Administration (FCTA), and land registries to direct all matters relating to the company’s affairs, assets, and business to his office.
The receiver also warned that transactions, contracts, commitments, or other dealings purportedly undertaken on behalf of NICON Insurance Limited, “being In-Liquidation”, would not be honoured without his ratification.
But in its response, NICON disputed the basis of the regulatory action, and declared that it was “not part of the fake and fraudulent recapitalisation exercise carried out by NAICOM”.
The company said the circumstances surrounding the purported recapitalisation process and related regulatory actions had already been formally brought to the attention of the Economic and Financial Crimes Commission (EFCC) and the Federal Ministry of Finance for “appropriate investigation and necessary action”.
NICON asserted that it remained a statutory insurance company established under an Act of Parliament and continued to conduct its business in accordance with the law.
The company consequently sought to reassure its policyholders, shareholders, business partners, employees, financial institutions, and the general public that it “remains in business and continues to operate as a going concern”.
It rejected any contrary representation suggesting that the company had ceased operations.
The company said, in a statement, “NICON Insurance Limited remains committed to the rule of law and due process.”
It said it was taking “all necessary legal steps” to protect its rights and interests, stating that the issues arising from the actions complained of are currently before the courts.
According to the company, the matter is pending before the Federal High Court, Abuja, in Suit No. FHC/ABJ/CS/1670/2026.
NICON urged members of the public to disregard any information or representation concerning its status that was inconsistent with the orders and proceedings of the court.
The statement further read, “NICON Insurance Limited wishes to state unequivocally that it is against the fake and fraudulent recapitalisation exercise carried out by the National Insurance Commission (NAICOM).
“The circumstances surrounding the purported recapitalisation process and related regulatory actions have been formally brought to the attention of the Economic and Financial Crimes Commission (EFCC) and the Federal Ministry of Finance for appropriate investigation and necessary action.
“NICON Insurance Limited is a statutory insurance company established under an Act of Parliament and continues to conduct its business in accordance with the law.”
It added, “The company, therefore, wishes to reassure its policyholders, shareholders, business partners, employees, financial institutions and the general public that NICON Insurance Limited remains in business and continues to operate as a going concern. Any contrary representation suggesting otherwise is rejected.
“The company is taking all necessary legal steps to protect its rights and interests. The issues arising from the actions complained of are presently before the courts in Suit No. Suit no: FHC/ABJ/CS/1670/2026.
“NICON Insurance Limited remains committed to the rule of law and due process. The public is therefore advised to disregard any contrary information or representation concerning the company’s status that is inconsistent with the orders and proceedings of the court.”
Meanwhile, NAICOM said its recapitalisation programme was designed to strengthen the financial capacity of insurance operators and ensure that companies operating in the sector had sufficient capital to absorb risks and meet their obligations to policyholders.
The commission had required operators to meet the new minimum capital thresholds within the prescribed period, with failure to comply attracting regulatory sanctions, including licence cancellation.
NAICOM had maintained that the enforcement of the new capital regime was aimed at ensuring that only adequately capitalised and financially resilient operators remained in the insurance market.
The insurance sector regulator recently announced the conclusion of the industry recapitalisation exercise after verifying and confirming seven additional insurance companies that had met the minimum capital requirements prescribed under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The development took the number of insurance companies confirmed and verified by the regulator as compliant with the new capital requirements to 48, alongside two reinsurance companies.
NICON’s case, however, now places the implementation of the recapitalisation regime under further scrutiny, following the insurer’s allegations of irregularities and its decision to seek judicial redress.
The receiver is expected to liaise with NAICOM on matters arising from the liquidation process and submit periodic reports on its progress, while the interests of policyholders, creditors, and other stakeholders will form a key part of the exercise.