Wednesday, November 07, 2018 06:55PM / By Proshare Research
In July 2018, the Chartered Insurance Institute of Nigeria (CIIN) elected Mr. Eddie Efekoha, the Managing Director/CEO of Consolidated Hallmark Insurance Plc, as its President (Re: Eddie Efekoha To Become CIIN President)
Come 2020, there would be a change of baton and the line of succession indicates that Dr. Sakiru Oyefeso, current Deputy President of CIIN will follow the natural succession plan to become its 50th President at the expiration of the tenure of Mr. Efekoha.
The CIIN Elected Council Members are:
It would appear that the natural succession plan has to be considered in the light of disclosures and actions related to and around the news in early August 2018 when Staco Insurance Plc announced the dismissal of its Group Managing Director/CEO, Dr. Sakiru Oyefeso, the current Deputy President of CIIN (Re: Staco Insurance Plc Dismisses Dr Sakiru Oyefeso as CEO and Appoints Mr Bayo Fakorede)
This is instructive given the statement issued by STACO to the Nigerian Stock Exchange on Tuesday, August 07, 2018 which stated that:
“We wish to notify The Exchange, our shareholders and our esteemed stakeholders that the Board of Directors of Staco Insurance Plc (the Company) at its meeting held in Lagos on the 30th day of July 2018, passed a resolution dismissing Dr. Sakiru Oyefeso as the Chief Executive Officer of the Company on the grounds of financial misappropriation, abuse of office and breach of corporate governance best practices.”
Mr. Bayo Fakorede has been recommended by the Board as the new Chief Executive Officer of the Company; however this is subject to the approval of the National Insurance Commission (NAICOM), the Company’s primary regulator.”
Tradition vs. Governance Ethos
The Governing Council of CIIN can decide to put tradition ahead of integrity, professionalism and ethical conduct, matters arising from the disclosures above; to sustain the normal succession plan.
That would suffice where there is no definitive indictment by the regulator or any other regulatory body. Unfortunately, the standards have been defined to recognize the minimum threshold required for such definition, role and responsibility – it is the statement from STACO describing the dismissal which offers a clear action-prompt for the CIIN to take action now, rather than later.
While every person appointed/elected as Deputy President of the CIIN has always gone on to become the successor to the incumbent; this situation however raises the stakes.
If the leadership of the Institute is however conscious of the trust and integrity deficit apparent in the situation; it should take steps to uphold the values and ethics of the profession bytaking steps to address the conundrum it is in.
That the insurance industry is currently beset with a serious crisis of confidence is a trite acknowledgment of the obvious.
Acting decisively on this issue by giving the benefit to its council leadership to resolve any and all of it governance issues, and putting processes in place to deal with outcomes and changes; remains the path of honour open to this critical institution.
This is all so important giving that the regulator, NAICOM, is currently unable to proceed with its planned and necessary (with variations) re-capitalisation program announced late July this year (now suspended by a court order).
The impact of the choices made here will reverberate and influence the perception building objectives of the insurance industry in Nigeria.
The possible damage to the low level of trust by policyholders to the industry should encourage a decision that would reassure and energize the renewed belief.