An Abuja Federal High Court, has ordered the National Insurance Commission (NAICOM), to appear before it (August 20) to show cause why it must proceed with the set process of recapitalisation of insurance and reinsurance companies.
On Thursday (August13) Federal Judge Ahmed Mohammed, gave the order summoning NAICOM before it after the argument of Counsel to the plaintiffs, Ayodele Akintunde, SAN, in a motion ex-parte dated and filed on July 22 marked: FHC/AB/CS/835/2020.
Incorporated Trustees of Standard Shareholders Association of Nigeria and Mr Godwin Anono, are 1st and 2nd plaintiffs respectively, NAICOM is the stand alone defendant.
Akintunde told the court that the Commission circulars: NAICOM/DPR/CIR/25/19 of May 2019; NAICOM/DPR/CIR/25-02/2019 of July 23, 2019 and NAICOM/DPR/CIR/25-03/2019 of Dec. 30, 2019, which directed all insurance and reinsurance companies to increase their minimum paid-up share capital in the manners stated in the circulars, not later than Sept. 30, 2021, was not in compliance with the requirements of the law.
He said the plaintiffs/applicants solicitor had in a letter to the defendant on April 2020, objected to the recapitalisation process as stipulated in the defendant’s circulars, and expressed fear that NAICOM might continue with the recapitalisation process despite the current economic situation caused by the global pandemic.
He urged the court to hear the case despite the ongoing vacation pursuant to Order 46 Rule 5(1) and (2) of the Federal High Court (Civil Procedure) Rules 2019, informing the court that 2 plaintiff and other trustees and members of the 1st plaintiff have invested a lot of money in buying shares in insurance and reinsurance companies; arguing that if allowed to continue with the policy, this might restrict the business of insurance and reinsurance in the country and cripple the plaintiffs source of livelihood.
Judge Mohammed, after listening to the counsel, ordered NAICOM to appear before the court on August 20 to show cause why the interim order of injunction being sought by the plaintiffs should not be granted.
He directed that the motion on notice, seeking order of interlocutory injunction, the originating summon; the enroll order hearing notice should be served on NAICOM.