How Jimoh Ibrahim Stole And Wrecked NICON Insurance - Association of Former NICON Staff

We the above named group, have watched with studied silence the recent acquisition of 70% equity share of the old behemoth by a conglomerate of seasoned underwriters and investors.

This conglomerate known as Assurance Acquisition Limited (AAL) made up of the following organizations, Niger Insurance Plc, Kapital Insurance Plc, Nigeria Social Insurance Trust Fund (NSITF), Afribank Nig. Plc, APT Securities and Funds Ltd, New Era Corporation (USA), and Lnydon Freebody (USA). No where in this document was Jimoh Ibrahim’s Global Fleet mentioned. Little did we know that the good intentions of Government and expectations of Nigerians towards privatisation of NICON would be short lived with the introduction of the “leprous hand”. This is because the loquacious and boastful Jimoh Ibrahim hijacked the bidding and took the centre stage under very mysterious circumstances. A case between AAL and Jimoh’s Global Fleet is currently in Court.

ORIGIN OF NICON INSURANCE

NICON came into being vide Decree No. 22 of 1969 following Government adoption of Hon. J. C. Obande’s parliamentary committee report set up earlier in 1964. Operations started in August 1970 under the first Chief Executive, Mr. Derek Garston-Jones with only 15 employees, when Jimoh Ibraahim was only 3 years old. With a takeoff loan of just N2 million which was promptly repaid within a year, the performance of NICON was meteoric under him because it witnessed branch networking and expansion of investment portfolios where amongst others a 40% stake in Nigeria Acceptances Ltd (NAL Merchant Bank) was recorded. This deft move saw a leap in profit from $130,000.00 to $700,000.00 by 1973 when he finally retired.

Mr. Federick Olabode Ogunlana took on the mantle and under his watch NICON witnessed further jump in profit and branch expansion. However, by the time Jimoh Ibrahim was just 8 years old, Mr. Olayinka Lijadu (one of the industry’s most reverenced elders who Jimoh Ibrahim often disparages and insults in his numerous village meetings while he held forth in NICON), stepped in as the new Managing Director and by the time he retired in July 1989, NICON’s premium income had jumped to N614,415,368.00 or 47.10% of the total market share. Mr. Ogala Osoka took on the mantle of leadership where in his time he commissioned the 20-storey edifice christened, ‘NICON House’ situate at No.5, Customs Street Lagos, now an eyesore under Jimoh’s watch. Under Mr. Osoka’s midwife, its assets had more than doubled from N1.1 billion to N2.2 billion and a gross income of N2.9 billion or some 47% of the Nigerian market share. Mohammed Uba Kari assumed office in March 1993, with NICON already in the Billion Naira mark. Income saw a quantum leap from N2.9 billion to over N15 billion. This does not include recapitalization of N1billion fully paid in 1996, when Jimoh was still groping around the streets with very weak curriculum vitae trying to make ends meet. At this point NICON was not only a light year ahead of its co-travellers but by far richer than most banks with the exception of the Big Four. Also tucked under our belt is a commanding share of Nigeria-Arab Bank later Assurance Bank, Abuja Stock Exchange, now Abuja Commodity Exchange, NICON Plaza Abuja and stocks and shares in blue chip companies. Even when Kari left in 1999 and Ms P. M. G. Soares took over until her exit in 2006 NICON’s market share of the premium income was approaching 50%.

At privatisation Mr. Jimoh Ibrahim inherited a behemoth of 48 solid branches and 10 zonal offices scattered across the 36 states of the federation and an office in London; the best workforce of about 1,200 strong over half of which were professionals in the insurance and accounting fields. Over 500 buildings, landed properties at choice locations across the country with a first sale value pegged at N20 billion. If not for a caveat instituted by attorneys to Assurance Acquisitions Limited (AAL) some time in 2006 these properties would have been history. Rumours making the rounds are that some of these properties have been used as security for loans and other guarantees without the consent of Government who still has 30% stake in NICON. A good example is the property located at Gimbiya Street Area 11 Garki Abuja belonging to NICON Hotels which was sold to Skye Bank for N420 million. These loans and monies were never used for insurance transactions. Also amongst our properties are those in the heart of London located at:

All these with a cumulative value of over $40 million which for the caveat would equally have been history. From these properties NICON realises an annual rent of £450,000.00.

Other investments handed over to Jimoh were:

and Mid-way hotel, Makurdi) 100%

Information reaching us is that most of these blue chip companies’ shares have been sold and monies channelled to private use. This is in spite of huge outstanding liabilities of unsettled claims and other sundry expenses that are the primary responsibility of insurance which the National Insurance Commission (NICOM) has estimated at over N12 billion. This runs foul of INSURANCE ACT NO. 2 OF 1997 SECTION 83 (1&2) which reads in part, an insurer who encumbers or disposes of investments or does any other thing whatsoever which results in diminishing the security offered by any investments made pursuant of this decree is guilty of an offence and liable to a fine of N500,000.00 or to imprisonment for a term of 5 years or both…

The foregoing investments do not include liquid cash of £20 million in our London accounts which Jimoh quickly cashed and converted to personal use; cash at hand in various banks across the country totalling N2 billion and some outstanding premiums owed to us by PHCN (former NEPA), NPA, NITEL NNPC and so many organisations running over N15 billion. Most of these amounts of money have been collected by Jimoh and channelled to his escrow personal accounts.

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We make bold to state that these outstanding premiums formed over 98% of his last year’s most taunted generated revenue. There istheaccumulated pension fund of the pioneer staff of NICON who broke backs and served the Corporation honestly, diligently and sincerely to pile up these assets. These amounts total some N2.3 billion cash which was vacuumed by Jimoh into his private accounts thus leaving these retirees in abject penury after building this organisation. When these beneficiaries approached Jimoh for their retirement benefits, he sarcastically drove them away and lamented their stupidity to have spent all their lives building an empire for him to inherit.

Finally and most probably the most important of these assets bequeathed to Jimoh is the brand name NICON. This name connotes insurance services renowned the world over. Since this so-called Harvard trained self-confessed Jack of all trades and master of all took over the helm of affairs of NICON its hard earned credibility plummeted to rock bottom. As we speak currently we do not retain up to 0.08% of our old clients and less than 5% of our pre-privatisation share of the market. His attempt to launder his image by brandishing NICON’s name had failed as his bad business attitudes and sharp practices have further alienated him from genuine business partners. This explains why all his NICON this or that was all but a storm in a tea cup. Where is NICON Airline (a product of the destruction of EAS Airline)? Where is NICON Academy? Etc. The only “thriving” member of the bogus group is NICON Investment, the conduit pipe personally run by Jimoh to siphon all funds of NICON Insurance.

OTHER ASSETS SOLD BEFORE PRIVATISATION

Listed below were assets offloaded before the Corporation was privatised. Their proceeds were never paid to NICON but into the Federation Accounts viz:

NICON UNDER JIMOH IBRAHIM

From the analysis for far, one then wonders where this self-professed HARVARD trained (whatever that means) got the idea that NICON was CARCASS at the point of sale. This has been a collective insult on all staff of NICON INSURANCE CORPORATION either dead or living, retired or still serving. This compelled us to look at his pedigree prior to NICON. Until he found himself in NICON, Jimoh was the owner of a small outfit called Global Fleet that attempts merchandising petroleum products which owns a couple of non-active filling stations, mostly along the interiors of Ondo State where he comes from. In an effort to boost his image and explain away how an ant like Global Fleet could swallow an ELEPHANT like NICON, he launched a campaign to showcase himself as owning 60% of all AP filling stations across the country. Is it not curious that nobody can point to a Global Fleet’s filling station? Or are they differently branded in mysterious names? We therefore dare him, if he till stands by his words as a matter of urgency to publish the lists of:

Because we believe that if this gauntlet were thrown at CONOIL, OANDO or AP, computer printouts will awash our national dailies authenticating their claim. Sadly, Jimoh owes AP some millions, of Naira for products supplied but not paid for. This explains his do or die attempt to acquire AP and his personal dislike for Chief Otedola who genuinely won the bid.

The moment NICON was handed over to him, the first action taken by Jimoh was to sack about 85% of the staff claiming he could not be saddled by staff salary bills. The main criterion used to load shed was all staff with 8 years working experience and above must go. This singular foolish act by Jimoh saw the sacking of some of the most experienced and professional staff that were quickly absorbed by insurance companies that lacked such professionals. Those that chose to work with him were invariably frustrated out of service because they could not stand by and watch Jimoh redefine the laws of indemnity by flatly refusing to pay genuine claims. We were therefore shocked when in one of his various media chats he claimed to have employed over 8,000 staff and paid a huge salary bill of over N600 million. This figure is slightly shy of the total workforce of the insurance industry as a whole. The reality on ground is that the less than 200 staff that still remain in NICON had been battling with late salaries, non-payment of allowances, low motivation, low morale as a result of job insecurity, arbitrariness, knee jack response to otherwise very simple problems, no working tools, etc. Jimoh completely failed and remains a failure in the area of Corporate Governance because he is a Textbook Entrepreneur.

The second and most damaging was to personalise cash and assets of the company to personal use. Conscientious staff that opposed such moves were dismissed or transferred. Jimoh has been issuing conflicting figures on claims and other liabilities bequeathed to him. The latest was that of 10 th December 2007 in Thisday newspaper where he claimed to have inherited a liability of over N27 billion and also to have so far paid off N21 billion leaving a balance of N6 billion. From available records, total liabilities inherited were far less than N6 billion; this means Jimoh never paid one kobo to anybody but he only reproduced inherited liability. Our position is further corroborated by various organisations claiming non settlement of claims, liabilities and other sundry expenses numbering over 500, e.g., NDIC, INEC, NAN, SOSOLISO Air Victims, etc. But if Jimoh will be magnanimous enough he should please take paid adverts to tell the world the insureds paid, incidence of loss, claim numbers and amounts. If not, he should please SHUT UP!

Information reaching us is that in total violation of NAICOM guidelines where serving Chief Executives should be holders of CIIN stipulated qualification or its equivalent, Jimoh was only clever by half by creating 12 dummy subsidiaries with him as the GMD overseeing powerless chief executives that have no approving authority. This singular act means that every action must await his final approval. Swift decisions were compromised, payments of claims, commissions and liabilities were indefinitely held back while Jimoh fretted away monies made from premiums and other incomes. Furthermore, cash calls received from reinsurers and co-insurers meant for claims settlements as provided by law and practice were converted by Jimoh for personal use.

Today Jimoh has over 100 court cases against him and in many cases he has been using premium funds to prosecute private litigations.

 

This is the beginning of record straightening with Jimoh Ibrahim for the world to know!