Universal Insurance Plc has commenced legal action against the National Insurance Commission (NAICOM) following the revocation of its operating licence, with a Federal High Court in Lagos granting the insurer leave to challenge the regulator’s decision. The development was disclosed in a notice filed with the Nigerian Exchange (NGX) on Tuesday and signed by the company’s secretary, Chinedu Onyilimba. Universal Insurance was among the insurance firms that failed to meet the July 31, 2026 deadline set by NAICOM for compliance with the industry’s new minimum capital requirements. What they are saying
According to the company, the Federal High Court, Lagos Judicial Division, Ikoyi, granted leave for the insurer to institute proceedings against NAICOM and other respondents over what it described as the “purported cancellation” of its operating licence and the appointment of a Receiver/Manager. The court also ordered the respondents to explain why an interim order restraining further action on the licence revocation and receivership should not be granted.
“The Honourable Court has further directed the Respondents to show cause why an interim order staying any further action in respect of the cancellation of the Company’s operating licence or any action by the 3rd Respondent should not be granted,” the notice read in part. Universal Insurance further disclosed that the court directed all parties not to take steps that could render the proceedings ineffective pending the determination of the application.
The matter has been adjourned until September 3, 2026, for the respondents to show cause. The company said it would continue to keep shareholders, the NGX and the investing public informed of any material developments in line with regulatory requirements. Get up to speed
The legal action follows NAICOM’s decision to revoke Universal Insurance’s operating licence and appoint a receiver/provisional liquidator after the insurer failed to comply with the new capital requirements for non-life insurance companies. The revocation took effect on August 14, 2026, based on a notice dated August 13, 2026, which was subsequently confirmed by NAICOM. The commission said the action was taken under the provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which empowers the regulator to cancel the licence of an insurer that fails to remedy regulatory breaches within the stipulated timeframe.
Following the revocation, NAICOM appointed Ogbonna Chukwumerije, a partner at Pinheiro LP, as Receiver/Provisional Liquidator of the company. The receiver was mandated to take possession of the insurer’s assets, identify and reconcile liabilities, facilitate settlements where necessary, and provide periodic reports to the commission on the receivership process. What you should know
The licence cancellation came despite recent attempts by Universal Insurance to strengthen its capital position.
Earlier this month, the company announced a binding investment agreement with FPNG Co-Nvest Limited for a N7.13 billion equity injection through a private placement. Under the proposed transaction, FPNG Co-Nvest Limited would acquire a 50.1% majority stake in Universal Insurance upon completion, a move aimed at helping the insurer meet the new regulatory capital threshold.
The outcome of the ongoing court proceedings could determine whether the planned investment and ownership restructuring can proceed under the current regulatory circumstances.
