Mutual Benefits investors demand dividend after seven years

From Left:  Director, Mutual Benefits Assurance Plc, Michael Gowan; Group Managing Director, Mutual Benefits Assurance Plc, Akin Ogunbiyi and Chairman  Akin Opeodu, at the event.

Chuks Udo Okonta

Having waited for seven years, shareholders of Mutual Benefits Assurance Plc, have told the company to pay them dividend so that they can maximize rewards on their investments.

The shareholders expressed the concern today at the Company’s Annual General Meeting (AGM) in Lagos. They noted that since 2007 they have patiently waited for their dividends, for which they have invested funds in the company.

A shareholder activist, Nona Awo, who was embittered over the nonpayment of dividends, told the directors to reduce their remunerations if they would not pay dividend in 2016.

Awo told the board to start the change in the company from the top, adding that leaders should always practice the change they preach.

He expressed doubt on the company’s ability to pay dividend next years due to the N700 million liability that is firm needs to settle.

Cross section of shareholders at the event.

Another shareholder, Augustine Anono, urged the firm’s board to consider the plight of shareholders and allow them have a pay back on their investments. He lauded the firm’s management for bringing the firm back to profitability.

Its Chairman, Akin Opedu, while responding to the call made by shareholders, said the company could not pay dividend this year because of the deficit of the previous year. He pledged that the company will pay dividend next year, adding that the revenue generated this year, has wiped out the deficits.

The company in 2014, made a profit before tax of N4.52 billion from a position of N911 million in 2013. The gross premium income moved from N8.1 billion in 2013 to N15.4 billion in 2014. The profit after tax stood at N4.1 billion as against N555 million in 2013.

The group asset base grew by 31 per cent from N32.2 billion in 2013 to N42.4 billion in 2014.

The company paid fine of N900, 000 to Nigerian Stock Exchange (NSE).