NICON Insurance Among Few Bad Cases Of Privatisation, Says BPE DG

The Director General (DG) of the Bureau of Public Enterprises
(BPE), Mr. Alex Okoh, has lamented the decay at the National
Insurance Corporation of Nigeria (NICON Insurance), describing it
as one of the few bad cases of privatisation in the country.

He regretted that the organisation, which was a going concern
before privatisation in 2005, was grossly mismanaged, and appealed
to the management and staff to collaborate and cooperate with the
new board on its rescue mission, to bring it to operational
vibrancy and solid pedestal.

The new board of NICON Insurance formally took over the affairs
of the enterprise with its maiden board meeting at the
corporation’s head office in Abuja on July 26, 2021 amidst tight
security.

The new board members had arrived the company’s premises as
early as 7:30am but could not gain access to the boardroom as it
was under lock and key while the only functional elevator in the
building was shut down.

It was not until some of the management workers sauntered around
the premises 8am that the elevator was eventually switched on and
the boardroom was opened and cleaned up for the meeting.

Speaking at the meeting, Okoh, who is also a board member,
lamented the decay in the organisation, noting that it was one of
the few bad cases of privatisation in the country.

Addressing a handful of NICON’s management staff, led by the
Deputy General Manager (DGM), Corporate Advocacy, Mr. Kunle
Adewale, the interim Board Chairman, Alhaji Lamis Dikko, who led
other board members, called for cooperation to reposition the
insurance company which he described as a national legacy.

He said the meeting was a follow-up to the last one by the board
where far-reaching decisions, including the immediate termination
of the appointments of the erstwhile managing director and
executive directors of the insurance company were taken.

A statement issued by the Head, Public Communications, BPE,
Amina Tukur Othman, quoted Dikko as saying that the mandate of the
new board is to preserve NICON Insurance as a going concern until a
new investor comes on board as the previous owner had woefully
failed to sustain and maintain the organisation.

He assured all employees that are desirous of staying back and
work for the good of the organisation that they have nothing to
fear but to support the new board to turn around the fortunes of
the company.

Also speaking, the interim Managing Director, Mr. John Abuh
Oyidiih, charged the workers to cooperate with the board and
management to reclaim the lost glory of the insurance company,
which he described as “an institution and can’t be allowed to go
down”.

He added that they needed not to hold an allegiance to any
individual but the institution.

NICON Insurance was privatised in 2005 with the core investor
having 70 per cent shares, with the federal government retaining 30
per cent.

The federal government’s shares were later diluted but the
fortunes of the company continued to decline with most of the
assets used as collateral to collect loans from banks.

This prompted the Asset Management Corporation of Nigeria
(AMCON) to take over the affairs of the company, a decision the
core investor challenged in court.

The court ruled in favour of AMCON but the investor went on an
appeal which the court asked the parties to maintain the status quo
leading to Monday’s takeover by the new board.

The Director General (DG) of the Bureau of Public Enterprises
(BPE), Mr. Alex Okoh, has lamented the decay at the National
Insurance Corporation of Nigeria (NICON Insurance), describing it
as one of the few bad cases of privatisation in the country.

He regretted that the organisation, which was a going concern
before privatisation in 2005, was grossly mismanaged, and appealed
to the management and staff to collaborate and cooperate with the
new board on its rescue mission, to bring it to operational
vibrancy and solid pedestal.

The new board of NICON Insurance formally took over the affairs
of the enterprise with its maiden board meeting at the
corporation’s head office in Abuja on July 26, 2021 amidst tight
security.

The new board members had arrived the company’s premises as
early as 7:30am but could not gain access to the boardroom as it
was under lock and key while the only functional elevator in the
building was shut down.

It was not until some of the management workers sauntered around
the premises 8am that the elevator was eventually switched on and
the boardroom was opened and cleaned up for the meeting.

Speaking at the meeting, Okoh, who is also a board member,
lamented the decay in the organisation, noting that it was one of
the few bad cases of privatisation in the country.

Addressing a handful of NICON’s management staff, led by the
Deputy General Manager (DGM), Corporate Advocacy, Mr. Kunle
Adewale, the interim Board Chairman, Alhaji Lamis Dikko, who led
other board members, called for cooperation to reposition the
insurance company which he described as a national legacy.

He said the meeting was a follow-up to the last one by the board
where far-reaching decisions, including the immediate termination
of the appointments of the erstwhile managing director and
executive directors of the insurance company were taken.

A statement issued by the Head, Public Communications, BPE,
Amina Tukur Othman, quoted Dikko as saying that the mandate of the
new board is to preserve NICON Insurance as a going concern until a
new investor comes on board as the previous owner had woefully
failed to sustain and maintain the organisation.

He assured all employees that are desirous of staying back and
work for the good of the organisation that they have nothing to
fear but to support the new board to turn around the fortunes of
the company.

Also speaking, the interim Managing Director, Mr. John Abuh
Oyidiih, charged the workers to cooperate with the board and
management to reclaim the lost glory of the insurance company,
which he described as “an institution and can’t be allowed to go
down”.

He added that they needed not to hold an allegiance to any
individual but the institution.

NICON Insurance was privatised in 2005 with the core investor
having 70 per cent shares, with the federal government retaining 30
per cent.

The federal government’s shares were later diluted but the
fortunes of the company continued to decline with most of the
assets used as collateral to collect loans from banks.

This prompted the Asset Management Corporation of Nigeria
(AMCON) to take over the affairs of the company, a decision the
core investor challenged in court.

The court ruled in favour of AMCON but the investor went on an
appeal which the court asked the parties to maintain the status quo
leading to Monday’s takeover by the new board.