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Universal Insurance has asked the Federal High Court in Lagos to overturn NAICOM’s cancellation of its operating licence and appointment of a receiver/provisional liquidator.
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The dispute followed the insurer’s failure to meet the July 31 deadline for new minimum capital requirements under the Nigerian Insurance Industry Reform Act 2025.
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The court case could affect a proposed ₦7.13bn private placement that would give FPNG Co-Nvest Limited a 50.1 percent controlling stake in Universal Insurance.
August 26, (THEWILL) — Universal Insurance Plc has commenced legal proceedings against the National Insurance Commission (NAICOM), seeking to overturn the cancellation of its operating licence and the subsequent appointment of a receiver/provisional liquidator.
The insurer disclosed the development in a notice filed with the Nigerian Exchange on Tuesday and signed by its Company Secretary, Chinedu Onyilimba.
According to the notice, the Federal High Court in Lagos granted Universal Insurance leave to commence proceedings against NAICOM and other respondents over what the insurer described as the “purported cancellation” of its licence and the receivership that followed.
The court also directed the respondents to show cause why an interim order should not be granted to suspend further action relating to the licence cancellation and receivership.
Court Challenge Follows Licence Cancellation
Universal Insurance said the court directed all parties not to take steps that could undermine the effectiveness of the proceedings pending the determination of its application.
The matter has been adjourned to September 3, 2026, when the respondents are expected to show cause.
The legal dispute follows NAICOM’s decision to revoke Universal Insurance’s operating licence after the company failed to meet the July 31 deadline for compliance with the new minimum capital requirements for non-life insurers.
The cancellation took effect on August 14, 2026.
NAICOM said the action was taken pursuant to the Nigerian Insurance Industry Reform Act 2025, which gives the commission powers to cancel the licence of an insurer that fails to address specified regulatory breaches within the required period.
Following the cancellation, the commission appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as Receiver/Provisional Liquidator.
The receiver is responsible for taking control of the company’s assets, determining its liabilities, facilitating settlements where appropriate and submitting periodic reports to NAICOM.
₦7.13bn Recapitalisation Deal Faces New Uncertainty
The court action comes shortly after Universal Insurance announced a proposed ₦7.13 billion equity investment by FPNG Co-Nvest Limited through a private placement.
If completed, the transaction would give FPNG Co-Nvest a 50.1 percent controlling interest in the insurer and provide additional capital to strengthen its balance sheet.
The proposed investment, therefore, offered Universal Insurance a potential route to strengthening its capital position amid the industry-wide recapitalisation exercise.
However, the licence cancellation and subsequent receivership introduce uncertainty around the proposed transaction. Its completion could depend on the outcome of the legal proceedings and any regulatory action that follows.
For shareholders and potential investors, the court case is therefore not only about the validity of NAICOM’s licence cancellation but also about the future ownership, capitalisation and operations of Universal Insurance.
Universal Insurance said it would continue to provide updates to the NGX, shareholders and the investing public on material developments concerning the proceedings.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
