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🇳🇬 Nigeria /Economy & Trade

Universal Insurance sues NAICOM over licence revocation

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources In the courts
  • Universal Insurance Plc is suing the National Insurance Commission (NAICOM) over the revocation of its operating license.
  • The insurer seeks to overturn NAICOM's decision, which was based on failure to meet new minimum capital requirements.
  • A court hearing is scheduled for September 3, 2026, to determine if an interim order will halt further action.

Universal Insurance Plc has initiated legal action against the National Insurance Commission (NAICOM), challenging the regulator's decision to revoke its operating license and appoint a provisional liquidator. The insurer filed a notice with the Nigerian Exchange, seeking to overturn the "purported cancellation" of its license.

The Federal High Court Lagos granted Universal Insurance leave to commence proceedings against NAICOM and other respondents over what the company described as the “purported cancellation” of its licence and the subsequent receivership.

— Universal Insurance PlcThe insurer disclosed the court's decision to allow their case against NAICOM to proceed.

The Federal High Court in Lagos has granted Universal Insurance leave to proceed with the case. The court has also ordered NAICOM and other respondents to appear and explain why an interim order should not be issued to halt actions related to the license cancellation and receivership. Parties are barred from taking steps that could jeopardize the proceedings pending the court's decision.

The court also directed the respondents to show cause why an interim order should not be issued to halt further action relating to the licence cancellation and receivership.

— Universal Insurance PlcThe insurer detailed the court's order for NAICOM to respond to the request for an interim halt.

NAICOM revoked Universal Insurance's license on August 14, 2026, after the company failed to meet the July 31 deadline for new minimum capital requirements for non-life insurers. This action was taken under the Nigerian Insurance Industry Reform Act 2025.

The dispute followed NAICOM’s decision to revoke Universal Insurance’s licence after the company failed to meet the 31st July deadline for compliance with the new minimum capital requirements for non-life insurers.

— Universal Insurance PlcThe insurer explained the regulatory basis for the license revocation.

Following the license revocation, NAICOM appointed Ogbonna Chukwumerije as Receiver/Provisional Liquidator. The case is adjourned to September 3, 2026. This legal challenge comes shortly after Universal Insurance announced a proposed N7.13 billion equity investment from FPNG Co-Nvest Limited, which could be impacted by the court's ruling.

The commission appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as Receiver/Provisional Liquidator. The receiver was tasked with taking control of the insurer’s assets, establishing its liabilities, facilitating settlements where appropriate and submitting periodic reports to NAICOM.

— Universal Insurance PlcThe insurer described the role and responsibilities of the appointed receiver.
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Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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