NAICOM obtains FEC approval for acquisition of N4bn uncompleted property

The National Insurance Commission (NAICOM) has explained that adequate due diligence was conducted on the N4 billion uncompleted property for acquisition and relevant approval were obtained from the Federal Executive Council (FEC) by the Commission.

In a statement in reaction to media publication titled “Re: Trouble looms in NAICOM over purchase of N4 billion uncompleted office building as new”, the Commission said that it obtained the approval of the Federal Executive Council (FEC) after adequate due diligence was conducted on the uncompleted property for acquisition.

The full statement reads:
“Re: Trouble looms in NAICOM over purchase of N4bn uncompleted office building as new”d

The attention of Management of National Insurance Commission (NAICOM) has been drawn to the above captioned publication in the Vanguard Newspaper of August 29, 2022 in which the Commission was among other things alleged to have deceived President Muhammadu Buhari GCFR and the Federal Executive Council into approving the purchase of a new office building in Abuja.

It was also stated in the publication that the Commission said it was buying a “ready to use magnificent office complex” rather than an uncompleted building.

While the Commission does not intend to join issues with the media, it has become imperative that the general public be availed with the facts as they are.

It is on this premise that the Commission state as follows: That the management of the Commission through the Honourable Minister of Finance, Budget and National Planning presented to the Federal Executive Council presided over by His Excellency, President Muhammadu Buhari, GCFR an Unfinished property for approval to be acquired as NAICOM Academy and office accommodation following the approval by the Commission.

All documents relating to the property clearly state that the property was in an unfinished state.

The Commission had prior to the FEC approval, obtained a “ No Objection ” from the Bureau of Public Procurement (BPP) following the valuation of the property by the Federal Ministry of Works and Housing. Adequate due diligence was conducted on the property for acquisition and all relevant approvals were secured by the Commission.

Provision was made in the 2022 approved annual budget of the Commission for the purpose of acquiring the building for the Commission.

The building is to serve the dual purpose of housing the newly established NAICOM Academy which is an initiative of the present leadership of the Commission to address knowledge gap in the insurance sector regulation and supervision not only in Nigeria but across Africa and beyond and also serve as the new head office of the Commission.

In order to address the problem of low insurance penetration, entrench the culture of insurance in every part of the country and enhance the effectiveness of its surveillance in all the geopolitical zones of the country, the expansion of the Commission’s infrastructural facilities is inevitable thus the Commission requires a befitting Office accommodation to curtail any future office space crises.

This clarification has become necessary to clear any doubt in the minds of the public with respect to the process followed by the Commission in it’s efforts at acquiring the property.
Signed : Management (NAICOM)