Checks showed that a few companies had fixed the funds raised to earn interest while some have deployed the funds to escrow accounts.
One of the operators told The Guardian that his firm fixed the funds raised while others planned to use the proceeds to strengthen business operations.
He noted he would not put his funds in an escrow account that would yield little or no returns. Another operator said the funds were deployed according to how they were sourced, adding that companies that raised funds through sales of shares have to transfer their funds to an escrow account in line with the law.
In the suspended recapitalisation, insurance companies raised funds through various sources such as private placements, sales of subsidiaries, asset sales amongst others.
The National Insurance Commission (NAICOM) had on December 30, 2020, announced the suspension of the recapitalisation, stating that it had to comply with a court order, which halted the exercise.
The Managing Director Lancelot Ventures Limited, Adebayo Adeleke, who is also a prominent member of the Independent Shareholders Association of Nigeria (ISAN), charged operators to be wary of how they utilize the funds as the suspension was not cancellation
He urged operators to continue with their fund drive, adding that they needed funds to underwrite high-ticket risks.
