The Federal High Court has restrained the Assets Management Corporation of Nigeria (AMCON) from taking further actions against NICON Insurance and Nigeria Reinsurance (Nigeria Re), companies belonging to tycoon Jimoh Ibrahim.
The verdict preventing AMCON from appointing NICON board members was issued in Abuja, Nigeria’s Federal Capital Territory, and the seat of the country’s power.
AMCON has also testified and confirmed receipt of a court notice from NICON, asking that they desist from taking any further actions against the institution.
Ibrahim is a Nigerian lawyer and businessman, who is the group managing director of NICON Insurance and Nigeria Re.
He is also the controlling shareholder of the two insurance companies, which AMCON took over last month over a N69.4-billion ($168.65 million) debt allegation.
Following the takeover, AMCON installed an interim board of directors at the company, approved by the National Insurance Commission.
While taking over the assets, AMCON said it was partnering with the Bureau for Public Enterprises to bring “much-needed stability” into the organizations’ operations.
According to the asset manager, “the reconstitution of the board and management team of the two insurance institutions in Nigeria is to ensure that the firms continue in their quest for transparent and accountable management of insurance in the country, and continue to deliver value to its stakeholders.”
This made NICON file a lawsuit against the state agency, challenging its plan to constitute the management of the two corporate organizations.
However, the Abuja court has adjoined the case until Sept. 8 for further hearings.