First Bank of Nigeria has urged a Federal High Court in Lagos to wind up Niger Insurance Plc, based on its inability to pay a debt of N137.2 million.
In a petition filed by a Lagos lawyer Onyeka Ofoegbu, First Bank alleges that a Vessel LB Tamuno was insured and registered with a consortium of insurance companies including Niger Insurance sometime in 2016.
Sometime in August 2018, the Vessel sank into deep waters. All efforts made to salvage it failed.
The bank demanded N2.496 billion as the total loss resulting from the sinking of the Vessel LB Tamino from the consortium of Insurers.
The claim was reduced to N1.263 billion by the consortium of insurers.
The Petitioner disagreed with the adjusted claim.
Following a review by loss adjusters appointed by the consortium of Insurers, the claim was increased to N1, 572 billion.
First Bank consented to the new claim and executed a form of acceptance in May 2019.
The bank avers that Niger Insurance amongst other insurers was to pay 10% of the agreed sum amounting to N157, 248, 000.00.
The bank avers further that Niger Insurance has only paid N20 million, against the agreed sum of N157, 248, 000.00 and has since refused to pay the outstanding sum.
According to First Bank, the insurance company is financially weak and as a result, incapable of liquidating its debt.
The bank says justice in the case will best be served if the directors of Niger Insurance are made liable to liquidate the company’s indebtedness.
In the circumstances, the bank tells the court, that it is just and equitable that the Company be wound up.
Justice Ayokunle Faji has adjourned the matter till 23 June 2022.