NAICOM petitions police over Niger Insurance asset stripping
Nigeria's insurance regulator has asked police to investigate attempts by unauthorized individuals to seize assets of defunct Niger Insurance, a dispute that highlights liquidation risks as the sector faces a July 2026 recapitalization deadline.
The National Insurance Commission (NAICOM) has petitioned the Inspector-General of Police over attempts by unauthorized individuals to seize the assets of Niger Insurance Plc, warning that the defunct company remains under the control of a state-appointed liquidator.
The regulatory crackdown follows a June 5, 2026, Federal High Court judgment obtained by individuals claiming to represent the insurer. NAICOM dismissed their claims as false and misleading, stressing that the ruling cannot override existing judicial decisions that validated the liquidation.
The regulator noted that a different Federal High Court judge struck out a similar challenge by former directors in January 2023. The Court of Appeal subsequently struck out an appeal in that case on February 27, 2025, upholding both the licence cancellation and the liquidation process.
“The suit was struck out by the Federal High Court on 31 January 2023 on the grounds that the Plaintiffs lacked the power to institute the suit after the appointment of the Receiver/Liquidator, whose appointment had been duly registered by the Corporate Affairs Commission,” NAICOM stated.
NAICOM further alleged that some former directors listed as plaintiffs in the latest lawsuit have formally denied authorizing the action, stating their names were used without consent. The regulator has filed applications seeking a stay of execution on the June 2026 judgment.
For creditors and policyholders, the dispute creates uncertainty over the recovery of funds from a failed institution. NAICOM revoked Niger Insurance’s licence in June 2022 alongside Standard Alliance Insurance, citing their failure to pay claims, staff salaries, and statutory obligations. Otunba Sanya Ogunkuade was appointed Receiver/Liquidator to realize assets and settle liabilities.
The clash over asset control emerges as Nigerian insurers navigate a broader sector recapitalization exercise. Commissioner for Insurance Olusegun Omosehin told the Nigerian Insurers Association on Thursday that the regulator is committed to preventing the collapse of any licensed insurance company. Insurance firms must meet the new regulatory capital requirements by July 31, 2026.
