Justice C. J. Aneke of the Lagos Division of the Federal High Court has restrained the National Insurance Commission, NAICOM, from taking any further steps in implementing its deadline date for insurance and reinsurance companies to recapitalize.
Justice Aneke made the order on December 21 while delivering ruling in an ex-parte application brought before the court by the Incorporated Trustees of the Pragmatic Shareholders’ Association of Nigeria.
The motion filed on December 15, 2020, was moved on behalf of the group by their lawyer, I.C. Ifedora.
The applicant prayed the court for an order of interim injunction restraining the defendant and its agents from taking further steps in the recapitalization process in the insurance industry pending the hearing and determination of its motion on notice before the court.
NAICOM, in a circular in May 2019, had called for increase in the minimum paid-up capital for insurance and reinsurance companies.
According to the circular, life insurance firms are required to meet a minimum paid-up capital of N8 billion, from the previous N2 billion, while general insurance companies are required to raise their minimum paid-up capital to N10 billion from N3 billion.