L-R: Commissioner for Transport, Lagos State, Mr Kayode Opeifa; Corps Marshal and Chief Executive, Federal Road Safety Corps (FRSC), Mr Boboye Oyeyemi; President, National Union of Road Transport Workers (nurtw), Mr Najeem Usman, during a Joint Lagos Mega Rally on Enduring Safe Road Culture on Thursday in Lagos (30/4/15) .

Activities in the insurance industry reopened on low pace on Monday, as some shareholders expressed mixed feelings over the non payment of dividends or dismal returns on their investments.
They said in separate interviews with the newsmen in Lagos that lack of visible return on their investments in the nation’s insurance sub-sector could compound investors confidence in the industry.
The National President of Constance Shareholders’ Association of Nigeria (CSAN), Mr Shehu Mikhail, said that the sustained culture of non dividend payment to investors remained an anathema in the nation’s financial industry and capital market.
“If the companies were able to acquire more assets and facilities in the reported year and did not ask for fresh funds from investors, it amounts to growth and a welcome development.
“The newly acquired assets or facilities should make investors happy because of the highly expected returns but the contrary is the case,” he said.
He also urged the management of insurance companies to be proactive in their investors relations issues.
“Mansard Insurance Plc did not declare dividends for 2014 but the management was very proactive in the payments of premiums and claims.
“They also assured us that all claims by policy holders for year 2014 have been paid, though we weren’t told the amount.
“The company was able to acquire another pension company and changed its name to AXAMansard to be operated by a global insurance company,” he said.
Another shareholder, Mr Henry Nwabueze, described the non payment of dividends by insurance companies as another issue that negateed corporate governance.
Nwabueze said issue became worse because of the dividend driven nation’s investment culture.
According to him, the non declaration of dividends culture by insurance companies impacts negatively on the nation’s quest for long savings through the capital market.
Also, Mr Ademola Moradayo expressed dissatisfaction with the poor relationship between insurance companies and retail investors.
Moradayo, a retired Headmaster, urged insurance companies to overhaul their operations and complement the efforts of investors that provided the seed funds.
“As we enter a change era in Nigeria now, we want change in insurance companies.
“They should, in addition to attracting investors to buy shares, also endeavour to make return on investment attractive,” he said.
In his contributions, Mr Adeleso Oluwatuyi threatened to divest from insurance companies if they continued to deny investors return on their investments.
Oluwatuyi urged the regulatory authorities to examine the rationale behind most insurance companies’ refusal to pay dividends over the years.
“There should be increments on all side, most of us are retirees, no pension and now no dividends; too bad, “ he said (NAN)
OBA/POE/IA
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