INVESTMENT GONE WRONG: Niger Insurance subscribers in limbo three years after company’s liquidation

In 2022, the National Insurance Commission (NAICOM) cancelled Niger Insurance Plc’s certificate of registration, with reports indicating that the company was struggling to pay policyholders’ claims, staff salaries, and carry out other obligations.

NAICOM subsequently appointed a liquidator to manage the winding-down process and assured stakeholders of the “safety and protection of their interests”. However, about three years later, policyholders are yet to receive compensation for their claims, leaving many frustrated and financially stranded.

The insurance company’s sudden closure has left hundreds in distress, with many struggling to recover their investments. Despite efforts to seek redress, the regulatory authority has yet to provide a resolution. TheCable’s BUSOLA ARO tracked down some subscribers to ascertain the present state of things and document their plight.

Eze Ifeanyichukwu, now in his 50s, thought the best financial decision to make as a salary earner was to secure good investments early in his career so he could have something to rely on later in life after his retirement and his income streams have all but shrunk. What could go wrong? He thought. But alas, everything did.

One afternoon in 2013, an agent from Niger Insurance approached Ifeanyichukwu, convincing him to think about his future, invest with the company, and get steady returns. After much prodding from the agent, he decided to take the risk of investing. After all, it was not a Ponzi scheme, he presumed.

“In 2013, the marketer came to the National Orthopaedic Hospital, Enugu. She came and convinced me and my other colleagues to invest in Niger Insurance,” Ifeanyichukwu said.

“I was paying N10,000 every month with them for 5 years. The first date I paid was June 1, 2013, and the thing ended May 1, 2018.

“They gave me a maturity discharge certificate, which was dated June 1, 2018.

“Every month, the marketer would come to my place of work to collect the money. There was a time I went to their office to confirm the payments, and I was shown that my investments were secure.

“At the end of my investment, I had saved N600,000, while my interest was N80,974. I also had an overpayment refund of N10,000. At maturity, I was to collect N690,974.”

Ifeanyichukwu said he was convinced the company was not a fraud, adding that the marketer had given him all the necessary certificates. But things would suddenly change, and his fears started becoming a reality.

“How I found out the issue was doomed was the time the woman told me that I was going to be paid, and they did not pay,” he said.

“Then I went to their company to complain. The day I went to their company, they even shut the door against me. Then I ran into one of the officers. I was able to get one of the officers. I made my complaint. There was another marketer who came from another company, and he took me inside to make a complaint.

“In fact, that very marketer that was collecting money from me, immediately she saw me, she ran out of the company, entered the vehicle, and drove out. She never came back. I got frustrated that day. I had gone there several times to make complaints. Each time they see me, they lock me out.

“At that point, I made further efforts to get the company to act by even making a complaint with the Public Complaint Commission. I have a letter that I wrote to them. After writing to them for several months, I found myself talking to one person for several days and realised that they couldn’t do anything. That was when I started losing confidence. I decided not to push further.”

The experience rattled Ifeanyichukwu. He was “devastated and shocked”.

“I had struggled to make this investment out of my salary. That money was for my project. I had to suspend it because of this. I am still recovering from the shock. My family got affected as well,” he said.

Almost in tears, Ifeanyichukwu said: “I will never have anything to do with any investment or insurance company… not even in my next life.”

‘EVERY EFFORT WAS A WASTE’

After five years of investment and almost three years of hard fighting, James Akinkunle, now in his early 60s, still could not get either the money insured or the interest.

Akinkunle, who was promised a 10 percent return on investment, had invested with Niger Insurance while he was stationed in Enugu for work.

“I worked in Enugu from 2006 to 2011. In 2010, a marketer from Niger Insurance approached me to come to invest with them,” he said.

“As of 2013, I had accumulated N660k in contributions. I was in the process of terminating the investment in 2022 because grapevine sources pointed to an imminent liquidation.”

But Akinkunle “was not fast enough”. Before he could conclude the process, the company went into receivership.

“That was the last we heard about the company and all investments therein: shareholders, clients, investors, etc.,” he said.

“I got my lawyer to write the company in November 2022 requesting a refund of my investment in light of the receivership. The letter was sent through DHL, so I have proof of delivery. But up till now, no acknowledgement of the letter has been made.

“Nigerians are willing to get insured, but there is a trust deficit in the industry. I do not know what the Federal Competition and Consumer Protection Commission is doing to protect insurers and ensure clients/investors get value for their money/investment.

“Apart from making away with the life savings of so many people in the form of investments, which is nothing short of fraud, a very painful aspect is the failure of institutions with responsibilities to safeguard the interests of clients, investors, and staff in case of any eventuality, such as receivership or liquidation.

“The FCCPC, the National Insurance Commission, the Securities and Exchange Commission, etc., all kept quiet on the Niger Assurance receivership/liquidation issue.

“Even the legal firm appointed as receiver/manager did not deem it fit to engage critical stakeholders such as investors, staff, clients, etc.”

‘LIVES LOST’ DURING FUTILE WAIT

“I know a few people who have died without assessing their money. I lost two people,” Chukwu Caroline, an official at the National Orthopaedic Hospital, Enugu, said while narrating her ordeal to TheCable.

“I took the first policy in 2012 and another policy in 2014,” she added.

“When it was time to get my money back, the company shut the doors against me. I kept going until I got tired. I also wrote to the Insurance Commission, but there was no response at all.

“I was going to buy a bungalow on a half plot of land. The money from Niger Insurance coupled with my savings was for that purpose, but that turned out to be impossible.”

Despite the seemingly bleak prospect, Caroline remains hopeful that her money will be repaid someday.

‘POOR MANAGEMENT’

Obaduemu Solomon, former manager of Niger Insurance, Enugu branch, told TheCable that the company was closed down due to “poor management”.

Solomon said the financial difficulties became evident years before liquidation, with salary payments becoming irregular.

“About four or five years ago, we started having issues of late payment of salaries. That was when we knew something was wrong,” he said.

“Since the liquidation, no staff has been paid. I am owed a salary of one year and nine months with benefits that were supposed to accrue 5 percent per annum based on the agreement from the discussion with the management and staff union as of that time.”

According to Solomon, when the staff saw that things were not going as expected, several resigned. As of the time of liquidation, about 300 staff nationwide were let go.

“I was at the head office before I was moved to Warri as the branch manager; subsequently, I was moved to Asaba to head the branch. Then I was moved to Enugu as the marketing manager,” he said.

“So, I was the marketing manager at the time the office was closed. Since the incident, I have not been able to get a job.”

Solomon said he receives constant threats from clients and has lost relationships along the way.

“Life has not been easy,” he added.

LIQUIDATION PROCESS ONGOING

In a telephone chat with TheCable, Halil Abba, NAICOM spokesperson, said the liquidation process is ongoing.

According to Abba, the process had been delayed due to legal battles.

“There were cases at the court brought up against the receiver liquidator, and NAICOM kept winning,” the spokesperson said.

“Although the case is currently at the supreme court, the court of appeal has given the go-ahead. Policyholders will be the first to be attended to.”

On his part, Sanya Ogunkuade, the liquidator/receiver manager for the defunct firm, said the settlement exercise is ongoing.

Ogunkuade said he took over the company fully in March 2024.

“There were court cases, but now we’ve started with the sales of some of the assets of the company, like the shares. Some of the properties are also on the market,” he said.

“So, we are being supervised by the National Insurance Commission. They are working along with us in the exercise. We want to ensure that we have something sufficient in hand before we start the process. Meanwhile, there will be advertisements in the newspapers to inform people as to when there will be a verification exercise.

“We’re looking at the next two months. The policyholders will be the first people who will be settled. That’s the priority.”

Despite these assurances, many affected individuals remain in financial limbo, waiting for the resolution of a case that has dragged on for years.