Nigeria: NICON Facing Liquidation Proceedings, Hearing on September 21

The National Insurance Commission (NAICOM) has revoked NICON’s certificate of registration effective August 3, 2026. A judicial administrator and provisional liquidator, Chukwuma-Machukwu Ume, was subsequently appointed to secure the company’s assets, identify its liabilities, and verify claims.

The case now has a judicial dimension. The Federal High Court of Abuja has set September 21 for the hearing of the liquidation request and has ordered the preservation of NICON’s assets pending this hearing.

NICON, however, rejects the basis of the regulator’s decision and asserts that it remains an active company. The company specifically disputes the application of recapitalization requirements and maintains that several aspects of the dispute are already before the courts. These arguments pertain to its position in the ongoing proceedings.

Policyholders at the heart of the process

The provisional liquidator must, in particular, inventory the contracts, assets, debts, and claims for compensation. Policyholders and creditors are called upon to provide the necessary documents to allow for the verification of their rights and any amounts that may be owed.

For life insurance contracts, a transfer of the portfolio to another operator may be considered under the supervision of the regulator. The procedure does not, therefore, by itself imply the automatic disappearance of policyholders’ rights: their treatment will depend on the verification of commitments and the decisions that will be made within the regulatory and judicial framework.

The hearing on September 21 constitutes the next major step. It is intended to allow the judiciary to examine the liquidation request while the regulator has already initiated the license withdrawal process and NICON is contesting its validity.