Tag: Great Nigeria Insurance

  • Balogun fire: How modest embers roared into flames

    Balogun fire: How modest embers roared into flames

    • Death toll now five

    • Over 100 feared trapped

    • Traders, residents count losses

    Death toll from the fire that gutted Balogun commercial district on Lagos Island stood at five as at 6 pm on Sunday, five days after a fire that started from a single room apartment turned into one of the deadliest market disasters in Lagos, Nigeria’s commercial nerve centre.

    Two more bodies, both men, were pulled out from the rubble earlier in the day, about 2:23 pm, marking ‘Day Five’ of a rescue mission said to have been slowed down by the raging fire, which started about 4 pm on December 24.

    The recovered bodies were at different stages of decomposition and could not be recognised. When The Nation visited the place, eyewitnesses and market leaders said about 100 people may still be trapped beneath the debris of the five collapsed buildings, including areas under the still-standing Great Nigeria Insurance (GNI) House.

    The GNI House, which was still smouldering, has underground sections and upper floors believed to house trapped traders. According to them, the intense heat emitting from the fire forced rescue teams to halt excavation.

    Beyond the loss of lives, the economic devastation is staggering, with traders estimating that goods worth hundreds of billions of naira — including textiles, fashion materials, finished garments and imported stock —destroyed in the blaze.

    Entire warehouses, some holding thousands of containers’ worth of goods, were wiped out. “This building alone carries over 3,000 container loads of goods,” a trader said, lamenting that “millions of people depend on this market daily. Now, we are jobless.”

    Some of the traders also lamented that insurance coverage has been limited, noting that insurance companies had long refused to underwrite many of the shops due to safety concerns, leaving most victims exposed.

    Emergency responders confirmed that the persistent blaze is their biggest obstacle. “The ground is still hot. Bulldozers cannot dig where fire is burning,” Plant Manager of Equipment Hub at Lagos State Emergency Management Agency (LASEMA), Salami Jamiu, who was on site, said. “We have to be alive to save others. We are proceeding cautiously,” Jamiu noted. He said while multiple agencies, including LASEMA, NEMA, Lagos Fire Service, Red Cross, and even private firms like Julius Berger, United Bank of Nigeria (UBA) and Nigeria Port Authority (NPA) provided tankers and support, the intensity of the fire made rescue efforts dangerous.

    Market leaders speak

    Market leaders insist the tragedy could have been contained. For instance, Chair of Association of Fashion Wears Dealers in the state, Clement Molokwu, said the fire started modestly. “It started from one room on the fourth floor. There was nothing so serious initially,” he said. “The fire gave enough time, but unfortunately it was allowed to escalate.”

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    Traders said two fire trucks arrived early, but couldn’t reach the source of the fire. “The first truck could not do anything,” an eyewitness said, noting: “It was only later they came with a bigger truck with a crane. By then, it was too late.”

    Multiple sources also blamed the disaster on unchecked commercialisation of residential and parking spaces, allegedly enabled by lax enforcement and collusion.

    “The three floors of the car park in the GNI Building were converted to shops,” said one trader. According to the trader, who declined to have his name in print, “that car park collapsed on nearby buildings, killing people.”

    Five buildings collapsed; three on Fred Martins Street and others in Shitta-Bey Court, trapping traders under concrete, goods, and twisted iron.

    “Every tiny space here has been turned into a shop,” another trader said, adding “families that own these buildings, with some local government officials, collect money and allow people to trade anywhere.”

    However, one of the survivors, who identified himself simply as Ogechukwu, said he escaped death by whiskers

    “When I saw the fire, I went in to salvage my goods. I was almost out when I heard an explosion. I escaped by the whiskers,” he said.

    But his two assistants, two labourers, and a neighbour, known as Naked Wire, were not as lucky. “They are still trapped,” he said quietly.

    GNI distances self from property

    GNI, in a statement on December 26, said it does not occupy or manage the building, citing a long legal dispute with the Shitta-Bey family, who it accused of forcefully taking over the property and leasing it to tenants.

    GNI said it has been denied possession of the building for over five years and does not conduct any operations there.

    Calls for government action

    Market leaders are now calling on the government to demolish the damaged structure, warning it poses danger to surrounding buildings and livelihoods.

    “With this building standing, nobody will come here to trade,” Board of Trustees Chair of the Traders’ Association, Chief Mezie Okwuosa, said, noting:  “Millions of people depend on this market daily.”

    Traders also demand stricter regulation of market spaces, mandatory on-site fire services, and modern firefighting equipment for large commercial hubs.

    “This was handled like a child’s play,” one trader said bitterly, saying: “With the level of investment and taxes paid here, this is a massive failure.”

  • Customs to sue firms for delaying N1.8b premium

    The Nigeria Customs Service (NCS) Comptroller-General, (CGC), Col. Hameed Ali (Rtd) on Tuesday vowed he would not hesitate to sue four firms for defaulting to pay the families of deceased officers’ backlog amounting to N1.819 billion premiums between 2009 and 2014.

    The customs boss however disclosed after getting the go-ahead from the National Assembly to pay the families from the service’s last year’s budget, he has raised a committee to effect the payment within six weeks.

    Ali, who made the announcement in Abuja, while inaugurating a committee to clear the claims in three tranches, revealed the defaulting insurance companies are: Niger Insurance, Great Nigeria Insurance, Chrome Insurance and Country and City Insurance.

    He accused the firms of not paying the Group Life Assurance and Group Personal Accidents liabilities during the period.

    The Comptroller-General noted that the firms did not give any excuse for sitting on the premium.

    According to him: “We have taken all the steps that we can including reporting them to the National Insurance Commission (NAICOM) but to no avail.

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    “Maybe we will end up, with the advice of the legal adviser, going to court.”

    The Nigeria Customs Service (NCS) boss said the people that suffer most from this are families and next of kin of the deceased officers.

    “What we did was to liaise with the National Assembly (NASS) in the last year budget within our fund to pay up these claims to alleviate the suffering. On how to get the money from the brokers will be decided in court,” Ali noted.

    Tasking the seven-man committee, he said: “Every Kobo will be paid with the supervision of the office of the CGC. It is our hope that this will alleviate the sufferings of our people.”

    Also inaugurating an eight-man committee to distribute perishable goods seized by NCS, he said Customs warehouses were filled and the need to distribute rice and other goods before the rainy season.

    Ali said President Muhammadu Buhari has approved the inclusion of formal orphanages and crisis areas beside the Internally Displaced Persons (IDP) in Borno, Adamawa and Yobe states.

    “We are looking at in the next six weeks, we should be able to distribute this consignment,” Ali said.

    The CGC has also ordered a comprehensive biometric exercise to capture all officers and men of the Service. Ali said there were disparities in the figure of the workforce.

    “There are officers who have been chopped out of the Service but they are still wearing uniforms and extorting money. These are the ones giving us a bad name,” he said.

  • Stock Exchange lifts suspension on Great Nigeria Insurance

    The Nigerian Stock Exchange (NSE) on Monday lifted suspension on trading in the shares of Great Nigeria Insurance (GNI) Plc, after the insurance company submitted its relevant financial statements to the Exchange.

    The NSE had on July 5, 2017 suspended trading in shares of GNI and other companies for failing to adhere to best corporate governance and extant post-listing requirements that require quoted companies to submit their periodic financial statements and reports within stipulated timelines.

    Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than 90 calendar days, or three months, after the expiration of the period. The rules also require quoted companies to submit interim report not later than 30 calendar days after the end of the relevant period.

    Not less than 83 per cent of quoted companies use the 12-month Gregorian calendar year as their business year. The business year thus terminates on December 31. While March 31 is usually the deadline for submission of annual report for companies with Gregorian calendar business year, the deadline for the quarterly report is a month after the quarter.

    The NSE stated that GNI, “which was amongst the companies suspended has submitted its outstanding financial statements to the Exchange” citing the rules that state that “the suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided the Exchange is satisfied that the accounts comply with all applicable rules of the Exchange”.

     

  • ‘Why Great Nigeria Insurance is delisting’

    Great Nigeria Insurance (GNI) Plc is pushing  to be delisted  from the Nigerian Stock Exchange (NSE) mainly because majority core investors are unwilling to dilute their shareholdings to free up more shares for minority retail investors.

    GNI Shareholders are scheduled to meet today in Lagos at an extraordinary general meeting to consider a proposal by the board of directors for the delisting of the insurance company from the NSE.

    In a statement on the proposed delisting, the board of the company noted that GNI’s free float currently stands at 16.03 per cent, significantly below the NSE’s minimum free float of 20 per cent for company listed on the main board of the Exchange.

    While the Quotations Committee of the National Council of the Exchange has extended the timeline for GNI to free up more shares to May 2020, the company stated that it may not be able to improve its free float within the period.

    “We do not expect that this deficiency will be cured during that period and we expect the NSE to initiate a regulatory delisting,” GNI stated.

    According to the board, through the voluntary delisting of GNI, the company will be exercising a regulatory provision that will shield it from any enforcement action that the Exchange may effect, which may arise as a result of the outstanding free float deficiency.

    The board also noted that over the last five years, there has been little or no trading activity on the shares held by the minority shareholders, pointing out that there has also been a considerable fall in trading volumes over the last 12 months with an average daily volume of about 1,200 shares between March 2017 and last March.

    The board argued that shareholders were not benefiting from the continued listing as shareholders were not getting any exit opportunity and their investments have been locked up and they found it difficult to dispose of their shareholding.

    The board added that the company has neither benefitted from the continuing listing as its shares continue to trade at a significant discount to the intrinsic value.

    “Furthermore, through the voluntary delisting process, the company will be providing an exit consideration to minority shareholders who do not wish to remain in an unlisted company,” GNI stated.

    The board of directors said the delisting will afford the company opportunity to further an imminent corporate restructuring exercise to take advantage of emerging opportunities, noting that the company may consider re-listing on the Exchange in the future if the market conditions are favourable.

    According to the company, the voluntary delisting will not occasion loss of business opportunities as there are similar unlisted insurance companies who are commanding significant share of the insurance market. Also, minority shareholders will not lose their shares because of the voluntary delisting and such shareholders may retain their membership in the unlisted company. However, through the voluntary delisting process, the minority shareholders – who do not wish to be members of an unlisted company – will have an opportunity to exit the company.

    As part of the delisting plan, Insurance Resourcery and Consultancy Services Limited (IRCSL), which owns majority equity stake in the company, has expressed willingness to pay a cash consideration of 50 kobo per share for every share surrendered by minority shareholders. The exit price of 50 kobo is based on the highest price of 50 at which GNI has traded in the last six months.

    “Shareholders that intend to a member of an unlisted GNI Plc shall be free to remain and there is no obligation to receive the exit consideration,” the board stated.

     

  • Great Nigeria Insurance pushes for immediate delisting

    The board of directors of Great Nigeria Insurance (GNI) Plc has convened an extraordinary general meeting of the insurance company to seek approval for immediate delisting of the company from the Nigerian Stock Exchange (NSE).

    In a regulatory filing yesterday, the board indicated that the extraordinary general meeting scheduled for Wednesday July 25, 2018 in Lagos will “consider and approve the delisting of Great Nigeria Insurance Plc from the Nigerian Stock Exchange with immediate effect”.

    While the insurance company had earlier secured provisional approval of the Exchange to restructure, GNI has struggled over the years to meet up with post-listing requirements at the NSE including failing to submit its operational reports as required and inability to meet the free float requirement.

    Companies listed on the main board of the Exchange are required to have a minimum of 20 per cent of their shares in the hand of retail minority shareholders, under a listing requirement known as free float. GNI, which is listed on the main board, only has a free float of 16 per cent. The company was recently given extended deadline of May 18, 2020 to dilute its bloc shareholdings and free more shares for minority shares.

    GNI has also been one of the companies that have been on the sanction list of the Exchange for failing to submit its quarterly and annual reports and financial statements within the stipulated timelines.

    Following Central Bank of Nigeria (CBN)’s banking regulatory regime that required banks to either divest from non-core banking subsidiaries or form a holding company to hold those subsidiaries, Wema Bank had opted to divest from its non-core banking businesses including GNI. The bank in 2016 sold 75 per cent majority equity stake to a consortium of investors known as Insurance Resourcery and Consultancy Services Limited (IRCSL). The deal was valued at N3.24 billion. A total of 2.87 billion ordinary shares of 50 kobo each of GNI were crossed in a single deal to Insurance Resourcery at N1.13 per share through the negotiated cross deal window of the NSE.