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Nigeria: Jimoh Ibrahim Gets Nicon, Nigeria-Re
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This Day (Lagos)
12 May 2008
Posted to the web 12 May 2008
Nnamdi Duru
Lagos
Baring last minute change of heart on the part of the parties, the Federal Government would in a matter of days return NICON Insurance Plc and its sister company, Nigeria Reinsurance Corporation (Nigeria-Re) to the core investor, Global Fleet Oil and Gas Limited owned by Barrister Jimoh Ibrahim.
An agreement to this effect was reached between the Federal Government and Global Fleet last Thursday and the "Terms of Agreement" have since been filed at the Federal High Court in Abuja last week.
Group Managing Director of the NICON Insurance Group, Barrister Jimoh Ibrahim, who made this known to newsmen in Lagos at the weekend, has however, assured employees in both organisations that the comprehensive reforms that would continue in the companies would not lead to retrenchments or down-sizing.
The terms of agreement dated May 8, 2008 was jointly endorsed on behalf of the Federal Government by Michael Aandoaka, Attorney-General of the Federation, Dr. Shamsuddeen Usman, Finance Minister and Mrs. Irene Chigbue, Director-General of the Bureau for Public Enterprise (BPE) while Chief Adeniyi Akintola, Counsel to the Plaintiffs, NICON and Nigeria-Re signed for the core investor.
The terms of the settlement, a copy of which was made available to newsmen recognised the fact that ownership and recapitalisation of the two insurance firms were non-issues even as the parties agreed to resolve and even settle the grey areas amicably.
Consequently, they agreed collectively that on appointment of the new boards and managements, National Insurance Commission (NAICOM) would hand over the companies to the Ibrahim-led core-investor group.
"That the terms of settlement are irrevocably binding on all parties and their privies, assigns, servants and agents. That on the appointment of the new boards and managements in accordance with the provisions of the Insurance Act, 2004, the regulatory shall ensure transfer of the company to the new management.
"Upon transfer of the plaintiff's companies to the new boards and managements in accordance with clause 10 of these terms of settlement, the plaintiffs shall forthwith, withdraw their three suits", the term of settlement stated.
In respect of NICON Insurance, the parties agreed that shareholders in the company (Global Fleet and the Federal Government) should jointly inject N17.3 billion to enable the company meet the financing gap and recapitalisation requirement to transact both life and non-life insurance business after due confirmation by an auditor appointed by the shareholders.
"That within a period of 60 days of the inception of this agreement, the sum of N17.3 billion shall be injected by the shareholders to meet the financing gap and recapitalisation threshold to enable NICON Insurance obtain license as a composite insurer. Within 30 days from the inception of this agreement, the plaintiffs shall invite the Auditors to reconfirm the financing gap of N17.3 billion", the terms of settlement revealed.
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Concerning Nigeria-Re, the feuding parties agreed that "the sum of N7.3 billion shall be injected by the shareholders in compliance with NAICOM's recapitalisation requirements as a prerequisite to obtaining license to continue as a reinsurer".
The terms of settlement also stated that the core investors shall render statutory returns to NAICOM's satisfaction for years 2006 and 2007 with a pledge to comply with this order henceforth and to maintain statutory investments in specified instruments as provided in relevant sections of the Insurance Act, 2004.
The parties also agreed that the shareholders should "settle all genuine insurance claims and outstanding liabilities owed to other stakeholders and maintain a valid reinsurance treaty for NICON Insurance and comply with provisions of the Insurance Act at all times".
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