Insurance Companies: House Of Representatives Adopts Motion To Suspend Recapitalization

Agitations against the proposed recapitalization of the insurance and reinsurance companies operating in Nigeria re-echoed Tuesday at the floor of the House of Representatives chamber under motions of urgent public importance.

Adopting the motion for suspension of the recapitalization process, the House of Representatives during plenary session presided by the Deputy Speaker, Ahmed Idris Wase, referred it to the House Committee on Insurance.

It would be recalled that the National Insurance Corporation (NAICOM) had proposed the recapitalization of insurance and reinsurance firms in Nigeria but which had elicited opposition from shareholders and investors who contended that the present realities of socio-economic and business environment does not support such proposition.

Rising under motions of urgent public importance, Hon. Benjamin Kalu
moved the motion on the need to suspend the proposed recapitalization of insurance companies and their intermediaries. It was seconded by Rep. Olododo Cook.

In his debate, Rep. Kalu said the reason behind the motion is because of the dire straits facing the nation economically as a result of the Covid-19 pandemic.

He stressed that the nation can ill-afford the funds expected to be spent on the program.

The program he said while being necessary; was not “hypercritical and could be done at a more appropriate time”.

He called on the government to be more sensitive through NAICOM to the plight of the companies.

Rep. Kalu also stated that because Nigeria is currently trying to exit recession as well as considering the effect of the national #endsars protests, it would be expected that funds would be channelled to aid such companies and not to further burden them economically.

Rep. Kalu called on NAICOM to suspend the Programme and that the insurance committee of the House should ensure compliance.

The motion was voted on, adopted and referred to the House Committee on Insurance.