NIC Holdings Ltd shareholders pleased with the resolution with Makerere University

27^th June 2019

KAMPALA – NIC Holdings Ltd resolves the dispute with Makerere. The resolution means that all issues in dispute between Makerere University and NIC as relates to the Makerere University Deposit Administration Plan (DAP) have been settled. The shareholders expressed gratitude to the NIC board and management of NIC Holdings for resolving the dispute as it had held the company back for too long.  They believe that there will be a rise in positive feelings towards the NIC brand as a dependable partner which can be relied upon to fulfill its obligations and honor its commitment.

In 2011, Makerere University sued the Company claiming the sum of Ushs16.7 billion as outstanding DAP payments. The amount claimed was in addition to the Ushs 15.7 billion which NIC had paid on the DAP scheme against a total contribution of Ushs 13.2 billion.

The Chairman, Dr. Aliker, in his statement, noted that although a significant payout to a former client in a court-certified settlement, inevitably affected its bottom line during the year under review, your company had a successful year in 2018 as it posted stable results in key performance areas. He went on to say that gross premium grew by 3.77 percent to Ushs17.58 billion in 2018 from Ushs16.94 billion written in 2017. Net Premium Income also rose by 21.66 percent from Ushs 9.37 billion in 2017 to Ushs 11.40 billion.

The Managing Director Mr. Bayo Folayan said it is important to note that the amicable resolution of the Makerere University dispute portends well for NIC. It has removed the cloud of uncertainty arising from the university’s claim for Ushs16.7 billion compared to the sum of Ushs 6.9 billion which we admitted as being due to Makerere University under the DAP scheme. The resolution now allows us to embrace the future with great optimism.

He went on to say that the company’s focus over the next few years is improving on the IT system and focusing on customer care as he believes the two areas are key to the success of NIC Holdings Ltd.

The shareholders re-elected two directors,  Mr. Obayomi Lawal, and Mrs. Keturah A. Tukuratire back on the board of directors. They also ratified the appointment of Dr. Alan Shonubi as a director of the company.

The shareholders also voted to reappoint Ernest and Young as the external auditors authorize the Directors to determine their remuneration.