Nigeria’s insurance regulator has revoked the operating licence of Nigeria Reinsurance Corporation, a firm owned by billionaire businessman and politician Senator Jimoh Ibrahim, citing failure to meet the statutory Minimum Capital Requirement.
The National Insurance Commission (NAICOM) issued a notice withdrawing the licence and urging the public, banks and financial institutions to cease all transactions with the company. The commission appointed Senior Advocate of Nigeria Dr Muiz Banire as Receiver and Provisional Liquidator to oversee the firm’s affairs.
In a statement, Banire warned that no financial transactions should be conducted on the company’s behalf except those authorised directly by his office. “Members of the general public, banks and financial institutions in Nigeria are hereby informed that no financial transactions should be conducted pursuant to any instruction from anyone except those that I issue as the Receiver/Provisional Liquidator,” he said.
The regulatory action extends beyond Nigeria Reinsurance. NICON Insurance Limited, another company in Ibrahim’s portfolio, was absent from the list of 43 insurers that satisfied NAICOM’s recent recapitalisation requirements. Both firms have since filed legal challenges against the licence revocation, according to court documents.
The move signals a major shift in Nigeria’s insurance landscape as the regulator enforces the Nigerian Insurance Industry Reform Act. The legislation, designed to strengthen the sector’s financial stability, has compelled companies to meet higher capital thresholds or face sanctions.
Industry observers describe the development as one of the most significant enforcement actions in recent years, reflecting NAICOM’s commitment to cleaning up a sector long plagued by undercapitalisation. The fate of Nigeria Reinsurance and NICON now rests with the courts, while policyholders and creditors await direction from the appointed liquidator.
The regulator has not disclosed a timeline for the liquidation process, but the appointment of a senior legal practitioner suggests a structured wind-down is anticipated. For the broader market, the action serves as a clear signal that compliance with capital adequacy rules is no longer negotiable.
