NAICOM lauded for extending recapitalisation deadline

Shareholders and operators in the Insurance Sector on Tuesday lauded the National Insurance Commission (NAICOM) for extending the deadline for the recapitalisation of the Insurance and Reinsurance Companies, earlier fixed for June 30, 2020, to Dec. 31, 2020 .

They spoke in separate interviews with News Agency of Nigeria (NAN) in Lagos  on Tuesday.

NAN reports that NAICOM had on Monday, in a circular with referenece No : NAICOM/
DPR/CIR/25-03/2019 /DECEMBER 30,2019 signed by Mr Pius Agboola, Director, Policy and Regulation,  announced the extension of the deadline.

Agboola said that the decision for the extension followed a review of the recapitalisation plans submitted by the operators and various levels of the compliance observed.

It also followed input from various engagements with relevant stakeholders.

In his reaction, Mr Boniface Okezie, National Coordinator, Progressive Shareholders Association of Nigeria, commended Mr Sunday Thomas, Acting Commissioner for Insurance, for ensuring the extension.

“There was no way the commission could stampede the insurance firms with the recapitalisation, considering the warbling and unstable economy and the not clear policy by the Government.

`If the Acting Commissioner continues with this trend, then it will be better for the market; as there is no need to be too rigid because you are regulating, but rather consider the plight of the stakeholders, ” he said .

Okezie urged NAICOM to improve on its policy for the sector, for the insurance companies to take their rightful position in the capital market which would in turn make the re-capitalisation seamless.

According to him, the effort, if made by NAICOM, will build the confidence of the public in the insurance sector.

“As a matter of concern, there is no will and confidence on the insurance sector.

“As at today, how many people patronise them? The share is lavishly below the power value.

“With the present reality, if there is going to be re-capitalisation, at how much price would they offer their Right issue or Public offer to the public or existing investors who will buy?

“When you have not been reaping or getting appreciable dividends from the one you invested as an investor, how will you invest more? ” he asked.

Okezie, however, urged the Insurance and Reinsurance companies not to relax in their efforts and plans to meet up with the exercise despite the deadline extension.

He said that from information gathered, some of the insurance firms which had started the re-capitalisation in a bid to meet up with the initial deadline, might not be successful with their offer.

The shareholder advised that with the extension window, the Securities and Exchange Commission (SEC) should be proactive to extend the offer and even for those already in the market doing the Right issue.

Okezie however stated that based on the new development, there is a future for most of the insurance companies to still be in the control of the local investors, instead of the foreigners.

Also, Mr Valentine Ojumah, Managing Director, FBN Insurance, lauded NAICOM for its courage and listening ear, describing the development as a sign of better times ahead for the sector.

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