N69.4bn Debt: Court Stops AMCON from Taking over NICON, Nigeria Re

A federal High Court in Abuja has restrained

AMCON announced Tuesday it had taken over NICON Insurance and Nigeria Re over alleged N69.4bn debt. It also said the takeover had been approved by the National Insurance Commission.

The suit No: PHC/ABJ/CS/760/2021 dated July 29, 2021 and filed on July 30, 2021 by the attorneys to the applicants, C.I. Okpoko, SAN, and C.C. Ogbonna Esq, prayed for an interim order to set down the instant suit for accelerated hearing.

Upon reading and hearing the affidavit in support of the application, verifying affidavit and affidavit of urgency all disposed to by William Aroeote, company secretary of NICON Investment Limited, Justice Mohammed granted the prayers sought.

The court ruled that an order is made setting down the instant suit for accelerated hearing and ordered that all the defendants be served with all the processes filed in the suit.

The judge also held that the applicants shall file a written undertaking to indemnify defendants in damages if the interim orders ought not to have been made or even applied for.

NICON Insurance was privatised in 2005 with the core investor having 70 per cent shares, and the Federal Government retaining 30 per cent. 

The federal government shares were later diluted but the fortunes of the company continued to decline, with the core investor allegedly using most of the assets as collateral to collect loans from banks.

This prompted AMCON to take over affairs of the company, prompting the core investor to challenge the decision in court.

The court had ruled in favour of AMCON but the investor went on an appeal and the court asked the parties to maintain the status quo, which led to Monday’s widely reported take over by the new board.