By Deborah Hassan
The House of Representatives on Tuesday asked the National Insurance Corporation of Nigeria (NICON) to suspend the insurance companies recapitalisation process in recognition of the financial struggles facing the industry due to the effects of COVID-19.
This followed the adoption of the resolution of a motion moved by Hon. Benjamin Kalu on the need to suspend the proposed recapitalization of insurance companies and their intermediaries. It was seconded by Rep. Olododo Cook.
Leading debate on the motion, Kalu noted the dire straits facing the nation economically as a result of the Covid-19 pandemic, with the federal government’s resources dwindling due to drop in revenue generation.
He said it was, therefore, unnecessary to expend funds on the recapitalisation programme which is not “hypercritical and could be done at a more appropriate time.”
Kalu further noted that the Nigerian economy is currently in a recession, in addition to adjusting to the effect of the national #EndSARS protests, saying it would be expected that funds would be channelled to aid such companies and not to further burden them economically.
He, therefore, called on the government to be more sensitive to the plight of the companies and direct NICON to suspend the process.
The motion was adopted and referred to the House Committee on Insurance.