Economy
Shareholder Drags Continental Reinsurance CEO to Court
By Dipo Olowookere
Managing Director of Continental Reinsurance Plc, Mr Femi Oyetunji, has been dragged before Justice Mohammed Idris of the Federal High Court sitting in Lagos by a shareholder of the company.
The aggrieved shareholder identified as Mr Maduka Kanma Okafor alleged that the Managing Director has been running the firm without following due process.
Mr Okafor, who claimed to have 19,890,013 shares in Continental Reinsurance Plc, said he was relieved of his position as Deputy General Manager, in charge of Information and Communication Technology (ICT) Department of the insurer in August 2016 by Mr Oyetunji.
In the suit filed by his counsel, Sonnie Ekwowusi, with five directors of the company joined as co-respondents, the petitioner said he practically built the company’s ICT from the scratch with so many positive ground breaking records from when he was employed in July 1993.
However, Mr Okafor alleged further that when Dr Oyetunji joined the company in January 2010 and became its group Managing Director/Chief Executive Officer, he went all out to dismantle the cost saving mechanisms of the company as well as abolish the pre -existing progressive structure and Corporate Governance structure system set up by the Securities and Exchange Commission (SEC) and the board of the company, by always favouring a South African company called Dimension Data to execute the ICT contract of the company even though the tender of the South African company was unbelievably high and its solutions non-futuristic and often not the best.
Mr Okafor stated that because of Dr Oyetunji’s personal interest in favour of Dimension Data and its subsidiary namely Internet Solution mentioned some particular projects which were executed to the detriment of the insurance company and its shareholders.
In the year 2016, Dr Oyetunji was alleged to have paid three extra budgetary bill in quick succession to Dimension Data to repeat the ICT audit which was earlier successfully completed, in excess of $100,000 followed by another $12,000 and another N12,825,000 all unbudgeted and unjustifiable.
It was further alleged that around the year 2012, Dr Oyetunji cause the finance department of Continental Reinsurance company to give a personal loan an unsecured one at that in the sum of N12 million to his friend and proprietor of the Ember Creek Night Club, Mr Abbey Ford.
He claimed the loan was not repaid, rather expectedly, it was written off.
However, following the Petitioner’s lawyer letter to the board of the insurance company in the last quarter of 2016, the board investigated and affirmed that Dr Oyetunji indeed illegally gave the aforesaid loan and consequently, the board has since ordered that the money be recovered by him.
When Dr Oyetunji was employed in 2010 by the company, the board approved the sum of N20 million to purchase two company vehicles for the use of the company.
This amount at that time was appropriate and sufficiently budgeted to purchase a v8 Toyota Land Cruiser and Toyota Avensis 2.0 liter engine vehicles, but he chose to purchase a Range Rover Vogue, which cost less than about N18 million, the petitioner alleged.
He then demanded and got the balance of N2 million in cash and further brought in one of his used cars, (a Honda Pilot) which had been in use for so many years, and put it in the maintainance pool as his second entitled car. In acting in this manner, he did not seek any authorization from the board of directors of the company, Mr Okafor alleged further in his petition.
He said the illegally, oppressive, discriminating and high-handedness of Dr Oyetunji at the company to the acquiesce of the board of Directors became so unbearable that one Mr Abdul-Rasheed Akolade, who was Senior Manager (Life) at the company at that time had to tender his letter of resignation. In his email, he said he was resigning because of the illegality and abuse of corporate governance at the insurance company.
In violation of corporate governance to the detriment of the shareholding interest of the petitioner, the Managing Director exclusively diverted the catering services of the company and all soft supplies and sundry contrast to his sister/cousin namely, Folake Oyetunji, who also signs as Folake Adesanya through her various business names at patently uncompetitive prices, Folake Oyetunji, without proper bidding, variously was awarded contracts by the Managing Director, he alleged.
According to him, all the decision presented to the board of the company as management decisions are never discussed by the management.
Mr Okafor averred that he has invested about 20 million shares in the Continental Reinsurance company, which constitute a significant part of his life savings and investment and that if unnecessary wastages and eroding of the reserve of the company by the Managing Director as averred above are remain unchecked, the petitioner would loose all his live savings and investment in the company.
Consequently, Mr Okafor prays the court as follows :
A declaration that Dr Oyetunji, contrary to the memorandum and articles of Continental Reinsurance Plc, runs the company in a manner that is illegal, oppressive and unfairly prejudicial and discriminatory to him.
An order directing Dr Oyetunji to account for all the personal profits and unnecessary benefits derived by him in the course of his management of the company
An order directing an investigation /inquiry to be made into the management and affairs of the company by the Managing Director.
However, in a counter affidavit against the petition sworn to by the Head, Human Resources and Admin Department of Continental Reinsurance, Dr Segun Ajibewa, and filed before the court by Barrister Olayemi Badewole, the deponent, while denying almost all the deposition of Mr Okafor, averred that the petitioner lack credible evidence to support this petition.
He also contended that the petition is an abused of court process as the petitioner had earlier filed a petition before the court which was dismissed with a cost of N50,000.
Dr Ajibewa further averred that the petitioner lacks the legal capacity to institute this petition seeking reliefs for the benefit of the company.
The petitioner was fairly treated as he was paid his severance package timely, but the petitioner upon the disengagement of his employment acted contrary to his duty to maintain confidentiality of the company’s corporate information and disclosed sensitive corporate information of the company’s business operations, management and board to his lawyer.
Meanwhile, the presiding judge has adjourned till June 4, 2018 for hearing.
Additional information from Today.ng
By Dipo Olowookere
Investors on the Nigerian Exchange (NGX) Limited bought and sold 5.119 billion shares worth N404.762 billion in 285,223 deals last week. This was significantly higher than the 4.433 billion shares valued at N306.143 billion traded in 255,589 deals in the preceding week.
This surge in activity level was driven by First Holdco, AVA Capital, and Access Holdings, which accounted for 2.308 billion units sold for N224.773 billion in 27,359 deals, contributing 45.09 per cent and 55.53 per cent to the total trading volume and value, respectively.
Data showed that financial equities led the activity chart with 3.918 billion units valued at N271.428 billion in 123,514 deals, contributing 76.55 per cent and 67.06 per cent to the total trading volume and value, respectively.
Services stocks followed with 203.203 million units worth N3.061 billion in 18,333 deals, and consumer goods shares closed with a turnover of 191.283 million units valued at N13.203 billion in 30,730 deals.
In the five-day trading week, 33 equities appreciated versus 57 equities a week earlier, 56 equities depreciated versus 38 equities in the previous week, and 58 equities remained unchanged versus 51 equities in the preceding week.
The best-performing equity last week was CMFC, which chalked up 22.78 per cent to trade at N3.88, Thomas Wyatt gained 20.66 per cent to close at N4.38, Consolidated Hallmark grew by 19.60 per cent to N8.36, Lasaco Assurance rose by 18.68 per cent to N2.16, and VFD Group increased by 12.21 per cent to N11.95.
On the flip side, the worst-performing equity was ABC Transport, which decreased by 18.44 per cent to N5.75. Fortis Global Insurance shrank by 16.13 per cent to N2.34, Tripple Gee slipped by 15.54 per cent to N2.88, Veritas Kapital slumped by 15.38 per cent to N1.43, and International Breweries crashed by 13.87 per cent to N11.80.
At the close of business for the week, the All-Share Index (ASI) succumbed to selling pressure, as it shed 0.84 per cent to settle at 245,283.68 points, while the market capitalisation retreated by 0.79 per cent to N158.326 trillion.
Similarly, all other indices finished lower apart from the premium, insurance and sovereign bond indices, which appreciated by 0.02 per cent, 1.72 per cent and 0.27 per cent, respectively.
By Adedapo Adesanya
The National Insurance Commission (NAICOM) has officially announced the completion of Nigeria’s 12-month insurance sector recapitalisation exercise, describing the accomplishment as a pivotal step that “signals the beginning of a new era for insurance in the country.”
Undertaken pursuant to Section 15 and other relevant provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law by President Bola Tinubu on July 31, 2025, the exercise aligns directly with the administration’s economic agenda aimed at building a $1 trillion economy by 2030.
Following a rigorous process of review, verification, and validation, NAICOM said in a statement on Sunday that 43 insurance and reinsurance companies have successfully satisfied the new prescribed Minimum Capital Requirements.
The confirmed non-life insurers include Zenith General Insurance Company Limited, Custodian and Allied Insurance Limited, NEM Insurance Plc, Heirs General Insurance Limited, Fin Insurance Company Limited, Tangerine General Insurance Ltd, Capital Express Indemnity Insurance Limited, and Sanlam-Allianz General Insurance Nigeria Ltd.
Others include Consolidated Hallmark Insurance Limited, Sterling Assurance Nigeria Limited, Unitrust Insurance Co. Limited, NSIA Insurance Limited, Rex Insurance Limited, Linkage Assurance Plc, Anchor Insurance Company Ltd, Sunu Assurances Nigeria Plc, KBL Insurance Ltd, International Energy Insurance Plc, Veritas Kapital Assurance Plc, NPF Insurance Company Ltd, Coronation Insurance Plc, and Prestige Assurance Plc.
In the life insurance segment, the successful companies are Custodian Life Assurance Limited, CHI Life Assurance Limited, Heirs Life Assurance Limited, Prudential Zenith Life Insurance Ltd, Stanbic IBTC Insurance Limited, Sanlam-Allianz Life Insurance Nigeria Limited, Capital Express Life Assurance Limited, Mutual Benefits Life Assurance Ltd, Enterprise Life Assurance Company (Nigeria) Ltd, and Coronation Life Assurance Limited.
The composite insurers, operating across both life and non-life insurance that satisfied the requirements comprise Leadway Assurance Company Limited, AIICO Insurance Plc, Cornerstone Insurance Plc, AXA Mansard Insurance Plc, LASACO Assurance Plc, Fortis Global Insurance Plc, Industrial and General Insurance Plc, and Great Nigeria Insurance Plc. Additionally, Mutual Benefits Assurance Plc also met the non-life threshold. In the reinsurance category, Continental Reinsurance Plc and FBS Reinsurance Limited were confirmed compliant.
The regulator noted that an additional eight insurance operators, which submitted evidence of compliance shortly before the statutory deadline, are currently undergoing final verification and regulatory review, with outcomes expected within 14 days.
NAICOM stressed that the milestone “represents a major step towards building a stronger, more resilient, adequately capitalised, professionally governed, and policyholder-focused insurance sector that is better positioned to support national economic growth.”
The recapitalisation exercise was guided by explicit regulatory directives issued by NAICOM to guarantee an orderly, transparent, and verifiable transition. Through its Guidelines on the Implementation of Minimum Capital Requirements for Insurance and Reinsurance Companies in Nigeria, the Commission defined eligible capital instruments, admissible assets, verification procedures, and supervisory expectations throughout the implementation window.
According to the regulator, the action has successfully “enhanced the financial resilience of operators, attracted substantial domestic and foreign investment, and rekindled strong investor confidence” across the industry.
The commission highlighted that the recapitalised market boasts enhanced capacity to underwrite larger and more complex risks across strategic sectors of the national economy. The expanded capital base is set to improve insurers’ ability to settle policyholder obligations promptly, absorb emerging macroeconomic risks, support long-term national infrastructure projects, and boost the sector’s competitiveness within regional and global markets.
Furthermore, the exercise provides a solid baseline for NAICOM to deepen its risk-based supervisory framework, ensuring regulatory capital remains appropriately aligned with the nature, scale, complexity, and risk profile of each licensed operator.
The regulator reaffirmed its commitment to consumer protection, sound market conduct, and expanded financial inclusion as implementation of NIIRA 2025 continues alongside technological modernisation.
“Our unwavering commitment remains to build a fair, stable, innovative, inclusive, and globally competitive insurance market that inspires public confidence and delivers lasting value to policyholders and the Nigerian economy,” the statement read.
By Adedapo Adesanya
The Manufacturers Association of Nigeria (MAN) has urged the federal government to shift its focus from periodic bailout packages to comprehensive structural reforms, warning that financial interventions alone will not revive Nigeria’s struggling textile industry.
The association argued that years of intervention funds have failed to restore the industry’s competitiveness because the core challenges confronting manufacturers remain unresolved.
The Director-General of MAN, Mr Segun Ajayi-Kadir, said the textile sector’s long-term recovery depends on tackling persistent structural constraints, including unreliable electricity supply, inadequate local cotton production, smuggling, obsolete machinery and limited access to affordable long-term financing.
According to him, while intervention programmes such as the Central Bank of Nigeria’s Cotton, Textile and Garment (CTG) Policy and the N100 billion Real Sector Support Facility have provided temporary relief, they have not addressed the underlying factors driving high production costs and weakening the industry’s competitiveness.
“Key challenges that need attention include the high costs and inadequacies of energy supply, rampant smuggling and counterfeiting, a lack of quality raw cotton, outdated machinery and inefficient loan structures. While aid funds may help with immediate needs like fuel and debt repayments, they do not resolve the core issues of energy supply, cotton availability or market access,” Mr Ajayi-Kadir said.
He outlined a package of reforms that, according to him, would rebuild the textile value chain and improve manufacturers’ competitiveness.
Among the recommendations is the development of gas-powered Independent Power Plants (IPPs) in key textile hubs such as Kano, Kaduna, Aba and Ogun, as well as the creation of industrial parks with shared infrastructure, including Effluent Treatment Plants (ETPs), steam utilities and machinery maintenance workshops to lower production costs.
Mr Ajayi-Kadir also called for measures to revive domestic cotton production through the introduction of high-yield, pest-resistant seed varieties and contract farming arrangements between textile mills and farmers to ensure a reliable supply of raw materials while reducing dependence on imports and exposure to foreign exchange volatility.
On financing, he urged the government to restructure industry loans by extending repayment tenures to between 10 and 15 years and permitting duty-free importation of modern spinning, weaving and printing equipment to boost productivity.
To protect local manufacturers from unfair competition, he advocated stronger anti-smuggling measures, including digital cargo tracking systems, border scanners and stricter enforcement of Executive Order 003 to prioritise locally produced uniforms and other government procurement.
The MAN chief further stressed the need to revive technical and vocational institutions to train textile engineers, weavers and computer-aided design (CAD) specialists capable of supporting a modern manufacturing industry.
He added that improving compliance with international quality and environmental standards would better position Nigerian textile manufacturers to benefit from export opportunities under the African Continental Free Trade Area (AfCFTA) and the African Growth and Opportunity Act (AGOA).
Mr Ajayi-Kadir pointed to Bangladesh, Vietnam and India as examples of countries that transformed their textile industries through sustained structural reforms rather than repeated financial bailouts.
According to him, Bangladesh emerged as the world’s second-largest garment exporter by providing duty-free access to production inputs and establishing special economic zones, while Vietnam built a globally competitive textile industry through reliable electricity, foreign direct investment and trade agreements.
India, he noted, strengthened its sector with PM MITRA textile parks, Production-Linked Incentive (PLI) schemes and investments in cotton production.
He maintained that Nigeria should concentrate on building a sustainable textile ecosystem instead of relying on temporary financial support for struggling manufacturers.
“With stable energy, reliable local cotton supply and protected markets, Nigeria’s textile industry has the potential to create millions of jobs and generate substantial foreign exchange earnings, just as Bangladesh and Vietnam have done,” he said.
