Axa Mansard Suspends N28b Hospital Project in Lagos

February 16, 2019
AXA Mansard Insurance

By Modupe Gbadeyanka

The board of Axa Mansard Insurance Plc has announced the suspension of the massive hospital investment project it plans to establish in Lagos.

In 2017, the firm informed the investing community of the Nigerian Stock Exchange (NSE) that it was planning to construct a 150-bed hospital and two 10-bed clinics in Lagos.

According to the notice released by the firm then, the project was expected to gulp about N28 billion and was due to be completed in 24 to 30 months from commencement of construction.

The firm had said upon completion, the project would be one of the largest and best resourced private hospitals in Nigeria and will provide a variety of inpatient and outpatient healthcare services.

The project was to be funded through an equal mix of equity and debt, with Axa Mansard already reaching an agreement with IFC, Africa Capital Alliance (a Private Equity fund) and other strategic investors to finance the project.

However, at the 77th meeting of board of directors of Axa Mansard Insurance held on Wednesday, February 13, 2019, it was unanimously agreed to put the project “on hold due to unforeseen circumstances.”

In a notice to the NSE on Thursday, the board, which did not give any details of the “unforeseen circumstance,” noted that it has already directed the management of the firm “to embark on further studies in order to determine an appropriate structure of intervention within the Nigerian healthcare delivery system.”

Also during the meeting, the board approved the company’s financial results for the year ended December 31, 2018, authorising the management to submit the Audited Financial Statements and Accounts to the National Insurance Commission (NAICOM) for its approval.

It resolved that upon receipt of the approval of NAICOM, the results should be filed with the NSE and upon obtaining regulatory approval, summary of the financial statements must be public.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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