The National Insurance Commission, on Tuesday, pledged to stay action on its planned recapitalisation of insurance and reinsurance companies in the country.
NAICOM gave the assurance through its lawyer , Mr Chukwuma - Machukwu Ume ( SAN) , when the suit challenging the process resumed before Justice Ahmed Mohammed of the Federal High Court in Abuja , on Tuesday.
The incorporated trustees of the Standard Shareholders Association of Nigeria and Mr Godwin Anono had jointly sued NAICOM as the sole defendant in the suit .
The plaintiffs are by their suit challenging the legality of the recapitalisation process .
NAICOM had via its circulars issued on May 20, 2019, July 23, 2019, and December 30, 2019, directed all insurance and reinsurance companies in the country to increase their “ minimum paid-up share capital “ not later than September 30, 2021.
But, the plaintiffs had through their lawyer , Ayodele Akintunde ( SAN) , instituted their suit to challenge the recapitalisation policy , which they argued was commenced by the regulatory body without compliance with the requirements of the law .
At the resumed hearing on Tuesday, Justice Mohammed noted that there was no situation warranting an urgent hearing of the case .
He added that his time as a vacation judge would end on September 25, hence, he would have to send the case file to the Chief Judge of the court for re -assignment to another judge.
But the plaintiff’ s lawyer , Akintunde , expressed fear that if a restraining order was not issued against NAICOM by the court , the agency might go ahead with the recapitalisation process while waiting for the matter to be heard and determined.
Responding , however , NAICOM’ s lawyer , Ume restated his earlier pledge that his client would not continue with the recapitalisation process until the determination of the suit .
“ Since we have been coming in the last three weeks , nothing has changed . Everything has remained. My lord , it can never happen , ” he said .
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