September 13, (THEWILL) – The Association of Securities Dealing Houses of Nigeria (ASHON) has called for an urgent review of the National Insurance Commission’s (NAICOM) revocation of Universal Insurance Plc operating licence, arguing that the action raises serious concerns for investors and the wider Nigerian capital market.
The umbrella body of SEC-registered stockbroking firms made the demand in a position paper signed by its Chairman, Sehinde Adenagbe, warning that the manner and timing of NAICOM’s action risks “destroying value, unsettling investors and undermining confidence in publicly traded companies.”
Citing the insurer’s N7.128 billion binding recapitalisation deal with FPNG Co-Nvest Limited that was disclosed on the very date the licence cancellation took effect, ASHON argued that the proposed private placement would have put the insurer on good stead upon completion.
They faulted the timing of the revocation, alleging the company and the market were confronted with “a fait accompli” rather than being taken through an orderly regulatory-resolution process, describing it as a “military-style swoop.”
In the position paper last week, Adenagbe, said the association supports effective regulation and industry recapitalisation but believes regulatory action should preserve value and protect investors where possible.
The association was blunt about what it called an apparent regulatory pattern, stating:
“We use the phrase ‘military-style swoop’ deliberately to describe a process in which a company and the market may be confronted with a fait accompli rather than being taken through an orderly regulatory-resolution process.”
“The company stated that its board and shareholders had approved the transaction and that it was engaging NAICOM and other regulators to complete the recapitalization process,” the position paper read.
“Yet, the cancellation of Universal Insurance’s registration took effect on the same date, 14 August 2026, pursuant to a NAICOM notice dated 13 August 2026.”
ASHON asked: “How can a listed company that is publicly pursuing a binding capital injection… be placed into liquidation at virtually the same point in time without a coordinated process that protects the interests of the investing public?” Universal Insurance had disclosed on August 14, 2026 that FPNG Co-Nvest had agreed to inject N7.128 billion through a private placement.
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Upon completion, FPNG would become the majority shareholder with a 50.1 percent stake.
Universal Insurance said its board and shareholders had approved the transaction and that it was engaging NAICOM and other regulators to obtain the necessary approvals.
ASHON said the sequence raises questions about whether a listed company pursuing a binding capital injection should have been given an opportunity for an orderly recapitalisation process before the irreversible step of licence cancellation and liquidation.
NAICOM’s revocation of Universal Insurnce’s licence took effect on August 14, 2026, based on a notice dated August 13, following the insurer’s failure to meet the new minimum capital requirement for non-life insurers under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
NAICOM subsequently appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as Receiver/Provisional Liquidator, tasked with tracing, securing and taking possession of the company’s assets.
Universal Insurance has since taken the matter to court and had secured leave from a Federal High Court in Lagos to challenge NAICOM’s decision. The court ordered NAICOM and other respondents to show cause why an interim order staying further action on the revocation and receivership should not be granted.
The matter was adjourned to September 3, 2026. But the adjournment was later extended to 16 September 2026 for the hearing of the main suit.
ASHON has pointed to the Federal Ministry of Finance’s recent decision directing NAICOM to suspend enforcement of disputed recapitalisation fees involving NICON Insurance and Nigeria Reinsurance Corporation as evidence that “regulatory firmness and regulatory review can coexist,” and urged the Ministry to apply the same spirit of supervision to the Universal Insurance matter.
Nigeria’s insurance sector raised about N720 billion during the recapitalisation exercise, with 48 insurers and two reinsurers subsequently verified as compliant.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
