• Jimoh Ibrahim Photo: Sun News Publishing

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Recently, two ministers sang discordant tunes over the ownership of NICON Insurance and Nig Re, thus exposing the sour relationship between them. It began with the takeover of the two firms by the Federal Government who alleged mismanagement of the insurance companies and the refusal of the former Group Managing Director (GMD), Mr Jimoh Ibrahim to appear before an investigation committee set up to probe the recapitalisation of insurance companies.

Prior to the takeover, Minister of Finance, Dr Shamsudeen Usman who spoke through the Minister of State for Finance, Mr Remi Babalola said that National Insurance Commission (NAICOM), has been empowered to administratively undertake the verification of NICON Insurance Plc and Nigeria Re-Insurance, both companies which, according to the minister, government has substantial interest in.

The minister also pointed out that the step was taken in compliance with the provisions of the Insurance Act. Among the mandates of NAICOM include a complete reorganisation, restructuring and automation of the activities and business processes to meet the existing and expanded demands of its mandate; issuance of final licences to the 49 companies which were recertified to operate as insurers/re-insurers, in order to position the sector on the part of sustainable long term growth. The minister said, this is “part of measures by the present government to remove Nigeria’s insurance sector from its globally insignificant and underdeveloped stage.”

But this decision did not go down well with Jimoh Ibrahim who headed for the courts to challenge the decision of the government. The Minister of Finance and the Attorney General of the Federation were named as defendants. In the courts, the two defendants sang different tunes as they did not agree on the terms of settlement which the Attorney General of the Federation(AGF) spearheaded.

The AGF’s action did not go down well with other defendants who took the matter to the President. In a letter signed by Babalola and addressed to the Attorney-General of the Federation referenced FMF/HMSF/ Vol.1/098 and dated March 3, 2008 stated: “I write to intimate you that I am in receipt of a letter from the Chief of Staff to the President and Commander-in-Chief of the Armed Forces of Nigeria referenced SH/COS/08/ A/3156 and dated 28th February 2008 addressed to your office and mine. I am also in receipt of a document titled ‘Terms of Settlement’ which was signed by you and the solicitors to the plaintiffs in this matter dated 3rd March, 2008 and bearing the stamp of the Federal High Court, Abuja.

“This agreement was unilaterally entered into without any consultation with the Federal Ministry of Finance and the National Insurance Commission who are also defendants in this matter.

I wish to state that Paragraph 4 of the terms of agreement which states inter alia ‘that only identified infraction shall be communicated to all owners of the plaintiffs and the plaintiffs be given reasonable time in accordance with law to address the breaches in a manner that will not compromise both of NAICOM and the insurance industry’ is completely at variance with the aforesaid directives of Mr President” Also citing paragraph (b) of the directives of the President and Commander-in-Chief of the Armed of Nigeria, he stated:

“The identified infractions be communicated to all owners of NICON as reason for the intervention and NICON be made to address the breaches in a manner that will not compromise both position of NAICOM and the Insurance Industry.” he said, insisting that the ‘Terms of Settlement’ as stated clearly avoided mentioning or taking cognisance of Paragraph (c) of the president’s directive which stated, “that the work of the Interim Board and External Auditors be aligned with the detected infractions which must be clearly stated and understood by NICON and the public as something legal and routineous devoid of misinterpretation and misrepresentation.”

Similarly, the Minister of State for Finance argued that what the said ‘Terms of Settlement’ referred to in Paragraph (iii) was false and a misrepresentation of the facts.
For him, “the said Terms of Settlement alluded in Paragraph (iii) that, “the government also took certain steps such as the takeover of NICON Insurance Plc and Nigeria Re-Insurance Corporation and the constitution of an Interim Management and Board for the two companies. This is false and a misrepresentation of facts,” he noted. This disagreement has, therefore, thrown industry watchers into confusion. So, the question on everybody’s lips is, what is the interest of the two ministers in an enterprise?