https://www.dropbox.com/s/tm83vkmrfgncq76/NAICOM%20Circular%20on%20Minimum%20Paid-Up%20Share%20Capital%2020%20May%202019?dl=0
I got this reaction from someone. I don’t know whether the intentions are real but it is worth sharing.
Letter to the Vice President – Professor Yemi Osinbajo
Your Excellency, the corrupt practices in the Financial sector has taken a new dimension, and I am scared that over 10,000 of us may loose our jobs in the next 1 year except you intercede on our behalves. We wouldn’t have complaint but for poor regulation and or corrupt practices at the highest level.
Anyone but an insider would have assumed that the recent call for recapitalization by our corrupt regulator, NAICOM, is within their judicial power. Unfortunately, the leadership is so corrupt, and are working with the selfish few in the Insurance space.
Your Excellency, should the recapitalization go through without proper investigation by your office, innocent Nigerians that voted for President Muhammad Buhari and your good self shall be thrown out of job effortlessly.
For avoidance of doubt, the intention of the people behind this recapitalization in our industry is to allow some insurance companies take over others by way of Asset stripping. These companies would throw over 10,000 of us into job market.
Your Excellency, It is better imagined that some limited liability companies owned by few families are posed to take over Publicly quoted companies.
(These few families would become richer at our cost!.)
Let me also refer you to their Annual Financials, you would observe that they consistently reported underwriting losses. They offer unprofessional rates in the Industry to out-smart competition and at the end manage to report profit from other Non-Insurance transactions. They do not pay dividend to anyone other than members of their families. Our regulator saw nothing wrong with this pattern!
Your Excellency, it is true that few of our member companies are distressed but our Regulator has not done anything tangible to address these before taken this selfish move.
Your Excellency, Insurance companies have not been able to pay dividends to shareholders in the last 5years. Due to rate cutting and sharp practices, You would also observe that the industry has failed to contribute meaningfully to the GDP as you would expect in other climate. In Nigeria, our Gross-Premium written has increased marginally but the Net premium has reduced astronomically! To this also our Regulator has found no remedy.
Your Excellency, the Agenda of NAICOM is simple:
• Create a leverage for the family-owned companies to buy publicly quoted companies with the intent of Asset stripping.
• Reduce the number of Insurance companies in Nigeria to about 10 companies.
• Put up Nigerian companies for peanuts by offering same to Foreign companies that are willing to buy. These companies shall pay commission to the Facilitators.
Your Excellency, the media has been bought by these people after the first failed attempt on tier-based recapitalization by NAICOM! You would not imagine that our incompetent Commissioner for Insurance did not even know that the Tier-based arrangement has no legislation until it was challenged by Share-holders! This guy is so incompetent!!!
Your Excellency, our future now depend on you good self and the 9th Assembly! All we demand is a fair investigation before recapitalization. This is an Election year. The Industry need good time frame to properly recapitalize.
The world is watching Nigeria Insurance Industry. The Media has been compromised!
Please save 10,000 jobs by re-broadcasting until this gets to Nigeria Presidency and the National Assembly.
Please SoS. Help us appeal to TVC, Channels, Tribune etc to stand up for the truth and stop this family-cabals!
yinkaogunrombi.com 