The Industrial and General Insurance (IGI) Company Limited on Tuesday asked the Federal High Court Abuja to set aside the sale of NICON Insurance to the preferred bidder, Mr. Jimoh Ibrahim. IGI also asked the court not to give effect to the Terms of Settlement reached between the government and Ibrahim on the return of NICON to the core investor.

In the suit filed by IGI counsel, Prof. Abiodun Adesanya (SAN) and Mr. Kola Awodein (SAN), the plaintiff contended that the purported sale of 70 per cent equity of NICON to Ibrahim was unlawful, null and void. According to the plaintiff, Section 1 of the 1999 Privatisation Act recommends that only 40 per cent equity of NICON should be sold to strategic investors. The percentage, IGI said, was increased to 51 per cent by BPE (Privatisation and Commercialisation) Order 2004. The plaintiff contended that contrary to the two statutory provisions, 70 per cent of the equity of NICON was sold to Ibrahim.

The plaintiff is also seeking the court's declaration that Assurance Acquisition Limited used by Ibrahim in buying NICON was merely a front and was not qualified to participate in the sale exercise. IGI alleged that Assurance Acquisition was incorporated after the August 1, 2005 deadline for execution of "Liability Aversion Agreement and Non-Disclosure Agreement''.

Besides, IGI alleged that Assurance Acquisition was given undue privilege which included a waiver of statutory levy of more than N463 million. It urged the court to declare that the waiver as granted by former President Olusegun Obasanjo was null and void because he lacked the authority or locus standi to grant it. The plaintiff, saying that it emerged the reserved bidder in the bidding exercise, urged the court to declare it as the lawful preferred bidder. No date has been fixed for hearing.