National Insurance Corporation of Nigeria

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The National Insurance Corporation of Nigeria popularly known as NICON is an insurance company established through a military decree (# 22) in 1969. The decree granted the company virtual monopoly in the insurance of government assets and property until the insurance act of 2003 repealed the monopoly. Through government legislation, NICON was able to dominate the insurance business by acquiring all government insurance business and about 10% income or premiums of other insurance firms in Nigeria. In 1974, as part of the an economic nationalization policy, the government sought the acquisition of 40-49% of all insurance companies operating in Nigeria through NICON.

The company in his history has engaged in underwriting various classes of insurance including life, aviation fire and oil and has between 48-52 branches across Nigeria.

History

The formation of NICON is attributed to twin situations around the end of the 1960s. First was the allegation of fraud in the insurance of government business (1) and second was the dominance of foreign insurance companies in the Nigerian insurance industry. To control corruption in the insurance of government property and to stimulate growth in the Nigerian insurance business as the foreign companies where criticized for catering to foreign business interests alone, NICON was founded. However, some faulted the dominance of the government property insurance business by NICON has stifling indigenous insurance enterprises as that was the main business of the few African owned insurance interests in the 1960s.

In the 1970s, the company engaged in insurance within the transport, oil, banking, building and construction, investment in shares and stocks and the hotel business.

In 2003, NICON's monopoly of the insurance business was repealed and the company was later privatized and sold to a consortium headed by Jimoh Ibrahim. However, in late 2007, the government dissolved the Jomoh Ibrahim led board of NICON. It was the intention of Ibrahim to transform the company into a global diversified player in the propoerty, oil and gas, investment management, aviation and telecom industry.

privatization

The privatization of NICON has yielded some controversy leading to allegations against the prime mover in Assurance Acquisitions, the Consortium that bought NICON. The allegations led to Jimoh Ibrahim's removal in November 2007 by the government with the setting up of an interim management later in January 2008. Prior to the removal, the new management had tried to position the company into a diversified firm. They acquired the non life insurance business of the Nigerian bank, U.B.A. and also acquired EAS airlines in 2006 to form NICON airways.


External links


References

  • Uche, Chibuike Ugochukwu. Government Ownership of Insurance Companies in Nigeria: A Critique. Geneva Papers on Risk & Insurance - Issues & Practice, Apr99, Vol. 24, Issue 2