Unity Capital Assurance appoints new CEO following NAICOM’s Intervention

Stakeholders of the Nigerian capital market have expressed confidence that with the assumption of the new Managing Director, of Unity Capital Assurance Company Plc, the ground has been set for turnaround that would usher in profitability and rewards to investors.
Findings show that the company has over the years not recorded profit and been unable to pay dividends to shareholders thereby creating uncertainty in the minds of investors.
However, in a recent memo to the Nigerian Stock Exchange (NSE), Unity Capital announced recent changes to the constitution of the Board of Directors of the Unity Capital Insurance Plc, with the resignation of its former MD/CEO Mr. Michael Dogo and appointment of his successor Mr. Oluyem Patrick Olatunji.

“The Managing Director/CEO of Unity Capital Assurance Plc Mr. Michael D Dogo, resigned his appointment as a Director and Managing Director of the company with effect from July 20, 2016, following approval from the National Insurance Commission. The Board of Directors have appointed Mr. Oluyemi Patrick Olatunji as the new Managing Director,/CEO of the company” a release by the NSE said.

The company said that Mr Olatunji has developed commendable experience in the insurance industry, as he has held various high positions in the industry in the course of his career. He was the former Managing Director of Royal Exchange Assurance Plc
The statement signed by Halima Jubril Wushuiishi, the company’s Secretary /legal adviser expressed the satisfaction of the company’s board, to have Olatunji as the company’s new Managing Director/CEO.
Early August 2015, National Insurance Commission of Nigeria (NAICOM) clamped down On UnityKapital Assurance and restricted the board of UnityKapital from holding any meetings or taking any further decisions in respect of the affairs of the company during the subsistence of the regulatory order
NAICOM’s head, Corporate Affairs, Mr. ‘Rasaaq ‘Salami revealed that the order was signed by the then deputy commissioner (Technical), Mohammed Kari,
“The board of UnityKapital is restricted from holding any meeting or taking any further decisions in respect of the affairs of the company during the subsistence of the regulatory order,” the statement reads in part.

While the executive management were directed to run the affairs of the company, all issues which may require the approval of the board were referred to the commission for consideration for approval.

“The management is restricted from incurring any expenditure on a single transaction in excess of N250,000 without prior approval of the commission. It shall also not incur any capital expenditure within the subsistence of this regulatory order without the approval of the commission.

“The order forbids UnityKapital divesting any of its existing investment without a written approval from the commission. All proceeds of divestment that have commenced prior to the order shall be paid into a dedicated account as approved by the commission,” the statement further reads.