The winding-up of NICON Insurance Limited has entered a new phase with the appointment of Chukwuma-Machukwu Ume, SAN, as Receiver/Provisional Liquidator to take control of its assets, transfer its life insurance portfolio and settle outstanding liabilities.

The cancellation of the company’s certificate of registration with effect from August 3, 2026, over its failure to meet the prescribed minimum capital requirement applicable to its category of licence within the stipulated compliance period.

In a public notice dated August 4, Chukwuma-Machukwu Ume, SAN, said he was appointed by NAICOM as receiver/provisional liquidator pursuant to the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

Under the terms of the appointment, the receiver is required to immediately trace, recover, secure and take over the assets of NICON Insurance.

He is also mandated to expedite the transfer of the company’s life insurance portfolio to another life insurer, subject to NAICOM’s approval, while collating and settling the company’s liabilities in accordance with the provisions of the law.

The receiver is further required to liaise with NAICOM for information available to the Commission and submit periodic reports on the progress of the winding-up exercise.

In a notice issued subsequently, the Receiver directed persons and entities with claims against NICON Insurance (In-Liquidation) to submit documentary evidence and particulars of their claims in line with the applicable liquidation procedure and within the period to be specified.

The notice indicates that the claims verification process will form part of the exercise to determine the company’s legitimate obligations.

The Receiver also stated that arrangements were being made, in accordance with the applicable law and liquidation process, to address the interests and entitlements of the company’s staff.

The development places the company’s assets, liabilities, policyholder obligations and staff entitlements under the formal liquidation process, with stakeholders expected to comply with the procedures established by the Receiver and the regulator.

NAICOM’s August 3 letter to the company’s board said the cancellation of the certificate of registration was based on NICON’s failure to meet the prescribed Minimum Capital Requirement within the stipulated compliance period.

The Commission said the action was taken pursuant to powers conferred on it by the NIIRA 2025 and other applicable regulatory requirements.

Following the cancellation, NAICOM directed the Receiver to commence the process of winding up the company’s affairs and deal with its assets and liabilities in accordance with the NIIRA 2025 and other relevant laws.

The Receiver has also urged stakeholders involved in the transition to cooperate with NAICOM and his office, stressing the need for the process to be guided by the rule of law and relevant legislation.

The development effectively shifts the focus from the cancelled licence to the practical process of determining NICON Insurance’s assets and liabilities, dealing with its insurance portfolio and resolving legitimate claims as the winding-up proceeds.