NAICOM Clarifies N4bn Office Acquisition Bid, Says Move Followed Due Process

James Emejo in Abuja

The National Insurance Commission (NAICOM), yesterday clarified that contrary to speculation, it secured approval of the Federal Executive Council (FEC) presided over by President Muhammadu Buhari to acquire an unfinished property as NAICOM Academy and office accommodation.

It said the council’s approval followed the green light it got from the immediate past governing board of the commission on the purchase.
NAICOM’s clarification came against the backdrop of allegations that the commission among other things, deceived Buhari and the FEC into approving the purchase of a new office building in Abuja.

In a statement issued by the management, the commission stressed that all the documents relating to the property clearly stated that the property was in an unfinished state, contrary to speculation.

It added that the commission had prior to the FEC approval, obtained a, “No Objection” from the Bureau of Public Procurement (BPP) following the valuation of the property by the Federal Ministry of Works and Housing.

The insurance regulator further maintained that adequate due diligence was conducted on the property for acquisition adding that all relevant approvals were secured by the commission.

It said provision was also made in the 2022 approved annual budget of the commission for the purpose of acquiring the building for the commission.
It added, “The building is to serve the dual purpose of housing the newly established NAICOM Academy which is an initiative of the present leadership of the Commission to address knowledge gap in the insurance sector regulation and supervision not only in Nigeria but across Africa and beyond and also serve as the new head office of the commission.

“In order to address the problem of low insurance penetration, entrench the culture of insurance in every part of the country and enhance the effectiveness of its surveillance in all the geopolitical zones of the country, the expansion of the Commission’s infrastructural facilities is inevitable thus the Commission requires a befitting Office accommodation to curtail any future office space crises.

“This clarification has become necessary to clear any doubt in the minds of the public with respect to the process followed by the Commission in its efforts at acquiring the property.”

The commission added that the management through the Minister of Finance, Budget and National Planning had presented its request for approval for the purchase of the edifice to FEC.