By Abibat Aliu
The freezing of bank accounts of NICON Insurance Limited and Nigeria Reinsurance Corporation(Nigeria Re) might have destabilised the operations of the two firms as they struggle to perform their daily operations.
The Court of Appeal sitting in Lagos, had, in December, 2021 dismissed two appeals filed by the Chairman of Global Fleet Group of companies, Jimoh Ibrahim, challenging the AMCON’s seizure of his assets and freezing of his bank accounts over his alleged N69.4 billion debt.
The appellate court re-affirmed the November 4, 2020 order of Justice Rilwan Aikawa of the Federal High Court, in Lagos which authorised AMCON to take over Ibrahim’s assets.
The Federal High Court sitting in Lagos had earlier granted Interim Possessory Orders in favour of Assets Management Corporation of Nigeria(AMCON) to freeze all bank accounts of NICON Insurance Limited and Nigeria Reinsurance Corporation(Nigeria Re), among other companies belonging to
The two companies have been struggling in the insurance industry prior to now, while NICON Insurance is battling huge unpaid claims running into several billions of Naira. Although, the current AMCON-led board and management strive to pay substantial part of the outstanding claims, the bank accounts freeze seems a challenge to that move.
The two firms have been in a legal tussle with AMCON over Jimoh Ibrahim’s huge debts in banks which AMCON bought over.
Investigation revealed that the insurance industry regulator, National Insurance Commission(NAICOM) had sent several warning letters to both NICON Insurance and Nigeria Re to reposition the companies or risk heavy sanctions which may lead to license withdrawal, however, the AMCON-led board is cooperating with NAICOM to reposition those companies.
Meanwhile, AMCON had, through a publication today, notified the general public that all the properties of NICON Investment Limited, NICON Insurance Limited, Nigeria Reinsurance Corporation, NICON Asset Management Company Limited, Global Fleet Oil and Gas Limited and Barrister Jimoh Ibrahim are not for sale not for lease.
“Any dealings in the properties are therefore invalid, illegal and no effect. Any person(corporate or individual) who wants to deal or acquire an interest in any of the properties must do so through the Receiver Manager,” it stressed.
It would be recalled that NICON Insurance used to be the biggest insurance player, not only in Nigeria, but across Africa prior to its privatisation, under the Olusegun Obasanjo’s led administration. However, the exercise saw the coming of businessman, Jimoh Ibrahim, to take over its ownership, alongside Nigeria Reinsurance Corporation(Nigeria Re). Although, the two firms started well post-privatisation, midway, they begin to struggle to cope with competition.
NICON Insurance is owing claims running into several billions of Naira, among others. It was learnt that NAICOM is engaging authorities to see how to salvage the two firms from collapse and its negative impacts on insurance industry’s image.
AMCON had on November 4, 2020 through its counsel obtained an ex-parte order against Nicon Investment Limited, Global Fleet Oil & Gas Limited and Jimoh Ibrahim freezing their accounts in various banks as well as attaching various properties of the companies.
The properties include NICON Investment Limited’s Building at Plot 242, Muhammadu Buhari Way, Central Business District, Abuja; NICON Hotels Limited’s Building, Plot 557, Port-Harcourt Crescent, off Gimbiya Street, Abuja; NICON Lekki Limited’s Building, No. 5, Customs Street, Lagos; Abuja International Hotels Limited’s Building – No. 3, Hospital Road, Lagos; Residential Apartment at Road 2, House A14, Victoria Garden City, Lagos; NICON Hotels Building, Plot 3, Road 3, Victoria Garden City, Ajah, Lagos and NICON Luxury Hotel’s Building, Garki 1, Abuja.
