The National Insurance Commission (NAICOM) has placed one of the oldest listed insurance companies, Niger Insurance Plc, under watch.
After extensive review and discussions at a top-level meeting the board and management of NAICOM, the Commission ordered that Niger Insurance shall not dispose any of its assets without its approval.
Also, Niger Insurance shall submit monthly report with the monthly management account to NAICOM.
According to a regulatory filing by the company, the Commission also directed that the management of Niger Insurance shall invite NAICOM to attend board meetings of the insurance company as an observer.
Niger Insurance had late last year appointed Edwin Igbiti as its managing director. The announcement followed approval of the appointment by NAICOM.
Igbiti was the immediate past managing director of AIICO Insurance Plc, another quoted insurance company.
Niger Insurance recently received shareholders’ approval to provide as much as a discount of 70 per cent to its nominal value in consideration for the N15 billion capital raising.
Shareholders authorised the board of the company to issue shares of the company “either at premium or a discount” provided that in case of a discount, it shall not be more than 70 per cent discount to the nominal value.
Shareholders had authorised the board to raise up to N15 billion by way of rights issue, private placement or not negotiate merger and acquisition or any other form of business combinations.
Shareholders mandated the board of the company to restructure its share capital by either of share consolidation, division, cancellation or redenomination of the shares of the company.