Following an Interim Injunction from the High Court to suspend the recapitalization of insurance companies, pending the determination of the suit challenging the process, the National Insurance Commission (NAICOM) said it has complied with the court order and will waive the initial mandate given to companies to meet up with half of the recapitalization directive by the last day of the year.
“The first phase of the recapitalisation of insurance and reinsurance companies would have been concluded yesterday, as it is customary, by 12 midnight.“Spokesperson of NAICOM, Mr. Rasaaq Salami, who disclosed this said: “You are aware that the issue is in court and there is an interim order of the Court. NAICOM being a responsible and law abiding organisation will respect the order of the court.”
“Salami also noted that NAICOM had responded to the letter written by the NIA where the association sought clearifications on uncertainties surrounding the ongoing recapitalisation.“The NIA had in a letter entitled: Segmentation of Minimum Paid Up Share Capital of Insurance Companies in Nigeria: Appeal For Waiver of December 2020 Milestone,” which was signed by the Director-General, Mrs. Yetunde Ilori, implored NAICOM to respond to its request for waiver of the December 2020 deadline for first phase of the recapitalisation exercise.
“The Association posited that the continued silence by the Commission on its position is of serious concern to operators. “This is underscored by a fast-approaching deadline and everybody is being kept in a suspense, which is not helping the market at the moment,” it said.
“NIA asked NAICOM to kindly respond to its letter and provide a position on other matters to properly guide the operators and all other stakeholders, thereby putting an end to unintended speculations and uncertainties surrounding the ongoing recapitalisation exercise.
“It will be recalled that under the schedule of compliance in the first phase, insurance companies are expected to meet cash payment of no less than 50 percent of the minimum new level of share capital, while reinsurance companies are required to come up to 60 percent.