The National Insurance Commission on Thursday told a Federal High Court in Abuja that the suit seeking to stop the planned re-capitalisation of insurance companies in the country is incompetent and as such not within the jurisdiction of the court.
However, Justice Mohammed ordered NAICOM to appear in court Thursday, August 20, to show cause why it should not be stopped. Responding, the counsel to NAICOM, Chukwuma-Machukwu Ume , informed the court that he had filed necessary processes including an objection to the suit, adding that he also received a reply from the plaintiffs Thursday morning.
The defendant’s lawyer, in addition, submitted that the plaintiffs lack the locus standi, that is the legal right, to sue NAICOM, describing them as “mere interlopers”. He told the court that after being served with the court order on August 17, NAICOM immediately issued a circular dated August 17, same date it was served, titled: “Re: Minimum Paid-Up Share Capital Policy for Insurance and Reinsurance Companies in Nigeria,” asking the companies to comply with its directive.