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Thursday,October 29,2020 03:03 AM

Gen Gowon firm to take over NIC

By Vision Reporter

Added 31st May 2005 03:00 AM

The Divestiture Reform and Implementation committee (DRIC) has approved the conclusion of the divestiture of the National Insurance Corporation (NIC).

The Divestiture Reform and Implementation committee (DRIC) has approved the conclusion of the divestiture of the National Insurance Corporation (NIC).

By Emmy Olaki

The Divestiture Reform and Implementation committee (DRIC) has approved the conclusion of the divestiture of the National Insurance Corporation (NIC).

The Privatisation Unit (PU) director, Michael Opagi, said Industrial and General Insurance (IGI), the Nigerian firm that won the 60% stake, will sign the handover forms, under a company called Corporate Holdings Limited, that IGI incorporated to sign the forms.

“IGI is the company that bid and was prequalified, but they requested government to allow them bring in new partners, who had originally not bid with them and government gave them the go ahead. So DRIC has approved that we conclude the transaction,” Opagi said on phone yesterday.

Other sources within PU said the other partners were only brought in as extras to boost the company’s bid, and that PU had done thorough due diligence on them in Nigeria and they came up clean and strong.
Former Nigerian president Gen. Yakubu Gowon is the chairman of IGI.

Jim Mugunga, PU’s publicist, said nothing was holding the process back as earlier reported.

“We are under obligation to DRIC, because it is the guiding body on divestiture. We had to go back to them to get endorsement and that was the reason for the delay. This is not unique to NIC. All transactions go through the same procedure,” he said.

Earlier reports indicated that there was a delay in concluding the transaction because of internal problems within IGI.

“These people acted within the stipulated time. They had 90 days to submit their fee, which they did. The rest of the transaction time is now up to us. The green light DRIC has given us is to do the contract, have it signed and hand over,” Mugunga said.

IGI, the biggest insurance company in Nigeria, offered sh6.2b for the 60% stake in NIC, beating Gold Star Insurance, who offered sh6.1b.

Gen Gowon firm to take over NIC

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