NAICOM Approves New Board for NICON Insurance, Nigeria Reinsurance

•NICON Insurance among few bad privatisation cases, says BPE

Ndubuisi Francis in Abuja

The National Insurance Commission (NAICOM) has approved the new boards and managements of NICON Insurance Limited and Nigeria Reinsurance Corporation (Nigeria Re).

That was as Director General of the Bureau of Public Enterprises (BPE), Mr. Alex Okoh, lamented what he described as the decay at NICON insurance, saying the company is one of the few bad cases of privatisation in the country.

Head, Corporate Communications Department, Asset Management Corporation of Nigeria (AMCON), Jude Nwauzor, disclosed the approval to the change of NICON Insurance and Nigeria Reinsurance boards in a statement. The statement said the changes were to enhance the smooth running, efficient and effective management of the two firms.

It said, “The reason for the changes in the board and management of the two insurance firms is sequel to the takeover of the major investor’s interests in the two organisations by AMCON and the Bureau for Public Enterprises (BPE) is working in partnership with AMCON to bring the much-needed stability in the operation of the organisations.”

The new board of NICON Insurance Limited has Mr. Lamis Shehu Dikko, as Chairman; Dr. Henry Uko Ationu as Managing Director/Chief Executive Officer; and Mr. John Abuh Oyidih as Executive Director, Finance and Administration.

It also has Director-General of Bureau of Public Enterprises (BPE), Mr. Alexander Ayoola Okoh, as Non-Executive Director, and Mr. Ahmed Dahiru Modibbo as Non-Executive Director (Independent).

Similarly, the statement disclosed that the board and management of Nigeria Reinsurance Corporation had Mr. Mela Audu Nunghe as Chairman; Mr. Olugbenga Falekulo as Managing Director/Chief Executive Officer, and Mr. Olusegun Ilori as Executive Director, Finance and Administration.

The BPE boss comes in as Non-Executive Director, while Mrs. Yvonne Isichei joins as Non-Executive Director (Independent).

“The reconstitution of the boards and management teams of the two insurance institutions in Nigeria is to ensure that the firms continue in their quest for transparent and accountable management of insurance in the country, and continue to deliver value to stakeholders.”

Meanwhile, the director general of BPE has lamented the decay at the NICON, describing it as a bad case of privatisation. He regretted that the organisation, which was a going concern before its privatisation in 2005, was grossly mismanaged, and appealed to the management and staff to cooperate with the new board on its rescue mission, in order to reposition the organisation.

The new board of NICON Insurance formally took over the affairs of the company with its maiden board meeting at its head office in Abuja on Monday, amid tight security. The new board members arrived the company’s premises as early as 7:30am, but could not gain access to the boardroom, as it was locked while the only functional elevator in the building was shut down.

It was only when some of the management staff sauntered in around 8am that the elevator was switched on and the boardroom was opened and cleaned up for the meeting.

Speaking at the meeting, Okoh, who is also a board member, said the meeting was a follow-up to the last one by the board where far-reaching decisions, including the immediate termination of the appointments of the erstwhile managing director and executive directors of the insurance company were taken.

A statement issued by the Head, Public Communications, BPE, Amina Tukur Othman, quoted Dikko as saying that the mandate of the new board was to preserve NICON Insurance as a going concern until a new investor comes on-board, as the previous owner had failed to sustain and maintain the organisation. He assured all employees desirous of working for the organisation that they had nothing to fear but said they should support the new board to turn around the fortunes of the company.

Speaking also, the interim Managing Director, Mr. John Abuh Oyidiih, charged the workers to cooperate with the board and management to reclaim the lost glory of the insurance company, which he described as “an institution and can’t be allowed to go down.”

Oyidiih told the workers that they owed their allegiance to the company, and not to any individual.

NICON Insurance was privatised in 2005, with the core investor having 70 per cent shares and the federal government retaining 30 per cent. The federal government’s shares were later diluted but the fortunes of the company continued to decline, with most of the assets used as collateral to collect loans from banks.

This prompted the Asset Management Corporation of Nigeria (AMCON) to take over the affairs of the company, a decision the core investor challenged in court.

The court ruled in favour of AMCON but the investor went on appeal, and the court asked the parties to maintain the status quo. This was the situation before Monday’s take over by the new board.

On its part, the Nigeria Reinsurance Corporation was established under the Nigeria Reinsurance Corporation Act No. 49 of 1977. It commenced operations on January 1, 1978, as Nigeria’s flag reinsurer, wholly owned by the federal government.