Following upward review of minimum paid-up share capital of insurance companies by the National Insurance Commission (NAICOM), some shareholders have threatened to drag the regulator to court again.
The shareholders who appeared visibly shaken and furious yesterday said they woke up to a rude shock of recapitalisation order of the regulator.
They threatened to sue the commission again if it attempts to enforce the review on insurance companies, just as they did when they drag it to court on the Tier Based Solvency Recapitalisation policy.
NAICOM on Monday gave a 13-month ultimatum to insurance companies recapitalise or lose their licences.
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The ultimatum, which became effective from Monday, raised the minimum paid-up share capital of a Life insurance company from N2 billion to N8 billion; Non-Life insurance from N3 billion to N10 billion and Composite insurance from N5 billion to N18 billion. Re-insurance companies were directed to raise their capital base from N10 billion to N20 billion.
President, Independent Shareholders Association of Nigeria, Mr Sunny Nwosu condemned the actions of the commission.
Nwosu said he was extremely sad to hear in the news yesterday morning that insurance companies should recapitalize to the huge capital required.
“We went to court when they came up with the tier-based recapitaliastion and defeated them, only for them to come back with another plan,” Nwosu said.
Comrade Lawrence Okusehin from Ibadan expressed fear over NAICOM’s decision.
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