FG signs fuel transportation, storage deal with Niger Republic

The Federal Government has signed a Memorandum of Understanding, MoU, with the Republic of Niger for the transportation and storage of petroleum products

Group General Manager/Special Adviser on Media to the Minister of State for Petroleum Resources, Garba Deen Muhammad in a statement in Abuja yesterday, said the MoU was reached following bilateral agreements between President Muhammadu Buhari and President Mahamadou Issoufou of Niger.

According to Muhammad, talks had been on-going between the two countries for over four months – through the Nigerian National Petroleum Corporation and Niger Republic’s National Oil Company, Societe Nigerienne De Petrole (SONIDEP), on petroleum products transportation and storage.

He explained that Niger Republics Soraz Refinery in Zinder, some 260 kilometers from the Nigerian border, has an installed refining capacity of 20,000 barrels per day, the country’s total domestic requirement is about 5,000 barrels per day, BPD, thus leaving a huge surplus of about 15,000 bpd, mostly for export.

Muhammad, stated that the MoU was signed by the GMD NNPC, Mallam Mele Kyari and the Director General of SONIDEP, Mr. Alio Toune under the supervision of the two countries’ Ministers of State for Petroleum, Çhief Timipre Sylva and Mr. Foumakoye Gado, respectively with the Secretary General of the African Petroleum Producers Organisation (APPO), Dr. Omar Farouk Ibrahim in attendance.

Speaking shortly after the MoU signing, Sylva expressed delight over the development, describing it as another huge step in developing trade relations between both countries.

He said: “This is a major step forward. Niger Republic has some excess products which needs to be evacuated. Nigeria has the market for these products. Therefore, this is going to be a win-win relation for both countries. My hope is that this is going to be the beginning of deepening trade relations between Niger Republic and Nigeria.”

Also commenting on the development, Secretary General of African Petroleum Producers Organisation (APPO), Dr. Omar Farouk Ibrahim said he could not be happier with what he witnessed in terms of co-operation and collaboration between the two APPO member countries in the area of hydrocarbons.“

I want to commend the Federal Republic of Nigeria and the Republic of Niger and their leadership for this milestone, he added.

The Group Managing Director of the NNPC, Mallam Mele Kyari in his remarks, said the two countries have had long engagements in the last four to five months with a view to restoring the importation of petroleum products (excess production) from Niger into Nigeria.

He said:“With this development, we hope to have a long-lasting and sustainable commercial framework to having a pipeline from the Soraz Refinery in Zinder (Niger) into the most proximate Nigerian city so that we can develop a depot”

“We are happy that we have reached that conclusion and our two ministers have endorsed this framework. We are also working on detailed MoU between our two companies so that we can continue the execution process immediately.”

Kyari further noted that being the most experienced of the two oil companies, the NNPC would support SONIDEP in terms of training and capacity building.

L- Dr Mrs Bola Onigbogi, President of the Nigerian Council of Registered Insurance Brokers (NCRIB); Mrs Joyce Ojemudia, Managing Director of African Alliance Plc; Chief Felix Amadi, author of the book “Retirement in Nigeria, a Management Approach” and Mrs Funmi Omo, Managing Director of Enterprise Life Ass. Nig Ltd, during the launch of the book in Abuja on Thursday

MSMEs important to employment, economic growth – Thomas

National Insurance Commission, Naicom has said the important of Micro, Small and Medium Enterprises, MSMEs to employment and economic growth cannot be hidden.

Naicom in collaboration with Star Sapphire foundation assembled start-ups in Kano to sensitise them about MSMEs and their benefits at a two workshop  theme: ‘National Workshop on Micro Insurance and Takaful.

While declaring the workshop opened,  the Commissioner for Insurance, Mr Sunday Thomas noted that MSMEs are important to employment and economic growth of Nigeria.

Giving the highlights of MSMEs, Thomas said they contributing 48 per cent to the nation’s Gross Domestic Product (GDP) 96 percent of businesses and 84 percent of employment.

He said that Nigeria has over 37.7 million MSMEs, according to the Ministry of Industry, Trade and Investment, and that for this reason, they could not simply be ignored, especially at a time when the government is looking for ways to address the twin problems of poverty and unemployment.

Also speaking, the Head of Micro Insurance unit of NAICOM, Hajiya Aisha Bashir said the main objective of the workshop was to enlighten start-ups on the need to have Micro Insurance.

Bashir however, noted that a key lesson learnt from the workshop was that although MSME operators in the state want Micro Insurance, but preferred Takaful, being interest-free and compliant with their religious beliefs.

She also stated that the awareness created at the workshop had prompted NAICOM to boost its awareness creation efforts and, would create micro Takaful insurance in order to pave way for MSMEs in Kano to benefit.

In his remarks, Alhassan Haruna, a Board Member of Star Sapphire said Kano has the highest number of MSMEs in the country, saying out of the 13 million population in the State, over eight million were engaged in businesses.

He said the workshop was organized to enlighten the small scale business owners about micro insurance, saying, “that was what informed the decision to start the sensitization campaign from Kano.

“A lot of business organizations have been invited in a bid to be enlightened on micro insurance because of the belief that most Muslims did not believe in the insurance, for religious reasons.

“But now Islamic scholars have raised awareness. People have now started to understand insurance’’, he said.

By admin

The Nigerian Airspace Management Agency, NAMA, said it had completed the calibration of all Instrument Landing Systems, ILS and other navigation facilities in 15 airports across the country.

Director of Operations , NAMA, Mr. Mathew Lawrence Pwajok stated that the calibration of all the facilities started on the 7th of October and ended on the 31st of October.

Pwajok also gave the assurance that the embarrassing situation where flights were being diverted to neighbouring countries experienced in the country last year and early 2020 due to the harmattan haze at the Lagos airport had been addressed.

According to him, “The new Nigerian calibration aircraft 5N CAA was used for the exercise which had saved lots of funds for the agency”

He further explained that with the installation and calibration of the landing aids, aircraft can have access to all airports at anytime especially the International airports opened for flight operations and others yet to be opened.

“At the moment, we have installed new navigational facilities in the following airports Port Harcourt we have a new DVOR, a dopplar VOR, we have also a new ILS CAT 2, we installed a new DVOR in Jos and a new ILS CAT 2. In Maiduguri, we installed DVOR and ILS CAT 2 and all calibrated also in the last calibration successfully. In Enugu, we have a new ILS CAT 2 installed this year and calibrated successfully.”

“In Benin, we have ILS CAT 2 installed and we are currently installing another ILS on the other runway in Benin CAT 2 brand new and we also DVOR that is on ground and the installations are going on as we speak.”

“All to enhance aircraft access to the airport and landing at any time. Even currently we are installing ILS CAT 2 in Akure, done ILS in Kano CAT 2 and a doppler VOR also in Kano all calibrated successfully. At the moment, we have an ILS system a new one in Minna and a DVOR awaiting installation, they are all on ground few work has been done it is just to install the equipment.”

On flight diversions experienced last year, the NAMA Director of Operations, assured that this is now history as the current landing equipment currently in Lagos ” both on ground and satellite, are tested, reliable, accurate and confirmed, there would be no diversions”.

“In the event you can’t use the ground equipment you can also use the satellite based systems for navigation, so both ground navigation and satellites navigation have been calibrated, tested, confirm, very reliable, very accurate. I can assure you fully we will not have such embarrassing situation again.”

He sai, “Yes, I can give you full assurance, number one, the two international airports that are opened for International flights, Abuja and Lagos, the ILS systems CAT 3 has been successfully calibrated with no restrictions, no limitations for both Abuja and Lagos”.

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AIICO Insurance has restated its commitment to strengthen the collaborative partnership with members of the National Association of Insurance and Pension Correspondents (NAIPCO) to actualize the company’s objectives for the betterment of the insurance industry.

The Managing Director of the firm, Mr Babatunde Fajemirokun, made the disclosure while giving an opening remarks to flag-off a one-day training workshop organised by NAIPCO for its members in Lagos on Tuesday.

The AIICO MD represented by the firm’s Head, Strategic Marketing and Corporate Communication Department, Mr.Segun Olalandu, commended the efforts of NAIPCO in creating awareness and educating the public on the benefits and advantages of insurance as a risk mitigating mechanism and a tool for poverty alleviation and wealth creation.

Fajemirokun implored the journalists to redouble their efforts and remain committed to their professional ethics and conduct in order to take the industry to the next level.

On recapitalization, he said the company is doing everything possible to meet the National Insurance Commission’s deadline of December 31, 2020 set for all insurance and reinsurance companies in the country to meet the first phase of the two-phase segmented recapitalization plan.

Commenting on the firm’s 2020 third quarter operating results, Mr, Fajemirokun said it achieved a 27 per cent year-on-year growth in gross premiums written from N37.0 billion in Q3 2019 to N47.2 billion in Q3 2020, noting that the global and local macroeconomic headwinds have continued to test the resilience of the firm’s business, and operating models as well as its business continuity plans and the strength of its relationships with customers and partners.

According to him, “The increased contribution to profits from our general insurance and our asset management businesses highlight the strengths as a group. Our general business continues to enjoy the confidence and support of our customers, despite the effects of the pandemic. Our asset management business, AIICO Capital, continues to grow its client base while investing judiciously on behalf of its clients. Overall, profit before taxes reduced seven per cent year-on-year, from N5.0 billion in Q3 2019 to N4.7 billion in Q3 2020″.

He said, “Profit-after-taxes increased 17 per centyear-on-year to N5.2 billion for the interim period ended September 30, 2020 from N4.5 billion in the corresponding period in 2019,” he said. The total assets, he said increased 55 per cent year-to-date to N245.8 billion from N159.5 billion in December 2019 driven by an increase in financial assets, including cash and cash equivalents”.

He noted that the financial assets increased because of the decline in investment yields and judicious investment of funds received for policies sold, maintaining that total liabilities increased 63 per cent to N212.6 billion from N130.6 billion in December 2019 driven mainly by increases in insurance contract liabilities (from the decline in yields and reserving for new businesses) and fixed income liabilities (3rd party funds under management) in our asset management business.

Total equity, he said grew 15 per cent year-to-date to N33.2 billion from N28.9 billion in December 2019.

“Our 3rd quarter results demonstrate that our business remains steady, despite the changing client preferences and risk exposures that have accompanied the COVID-19 pandemic. We have recorded strong top-line growth year-on-year as well as improved contribution from subsidiaries in our Group, especially our asset management business.

“In our core insurance business, we will continue to offer innovative products that help our customers create and protect their wealth while leveraging the latest technology to meet our clients where they are. In addition, strong asset-liability management remains a pillar of our operating model. As a diversified financial services group, we will continue to ensure that businesses across our Group offer attractive products that enable us create value for all stakeholders,” he said.

By admin

Linkage Assurance PLC, said it has met the N5 billion minimum capital requirements representing 50 percent as mandated in the two phases segmented recapitalization exercise of the National Insurance Commission (NAICOM).

Addressing the members of the National Association of Insurance and Pension Correspondents (NAIPCO) in Lagos on Tuesday, the Managing Director of the Company, Mr. Daniel Braie gave insight on how the company was able to meet the 50 percent recapitalization threshold.

He explained that as at December 31, 2019, Linkage Assurance PLC’s paid-up Capital was N4 billion, adding that to raise the remaining N1 billion, the firm at her 2019 Annual General Meeting (AGM) held on August 13, 2020, sought and received approval from Shareholders to raise the balance from the company’s accumulated retained earnings of N2.4 billion by issuance of two billion bonus shares of N0.50 kobo to existing shareholders valued at N1 billion.

Brain represented by the company’s Chief Financial Officer (CFO), Mr. Emmanuel Otitolaiye noted that under the two phases segmented NAICOM’s recapitalization plan, all insurance companies are expected to meet 50 percent and reinsurance companies 60% of the mandatory recapitalization requirements on or before December 31, 2020. The new minimum paid-up Share Capital regime demands that Life insurance operators should raise their minimum paid up share capital from N2 billion to N8 billion; those in General business to jerk up from N3 billion to N10 billion while the reinsurers should increase from N10 billion to N20 billion.

He said having met the N5 billion for the first segment, added that the company is working assiduously to ensure that the balance of N5 billion is made available before NAICOM’s September 30, 2021 deadline.

According him, “Having succeeded in obtaining shareholders’ and Regulatory approvals, Linkage Assurance Plc has met the N5 Billion minimum capital requirements as at date earlier than 31 December 2020 deadline set by NAICOM.

“The balance of N5 Billion would have to be met on or before 30 September 2021 being deadline set by NAICOM and the Company has array of options to comfortably achieve this before deadline.”

On the Company’s strategic outlook taking into consideration various strategies including its intention and focus, he said “Our Strategy is to consistently grow our revenue and deliver strong returns and excellent customer experience, while leveraging on technology, strategic alliances, and capabilities / insights to provide world-class insurance & risk management solutions. Our guiding principles are our Core Values and vision. They underpin our desires, ambitions and aspirations aimed at reinforcing the trust of our stakeholders

“Linkage Assurance PLC has the strategic intent of crafting a niche for itself and becoming one of the market leaders in the non-life insurance market in Nigeria. We recognized that the success criteria for an insurance company are a declining expenses ratio, good risk management and high /diversified distribution efficiency. Digitalization, innovation, and utilization of new and efficient technology are also important means for achieving Linkage Assurance PLC success criteria

The achievement of these require crafting of a strategic road map that enable us to realize both short- and long-term objectives including achieving desired monthly, quarterly, and annual targets and outcomes.

“Our core strategic focus is to grow both top and bottom lines (gross premium income and profit). It is also our intent to be one of the top 5 insurance companies in the non-life segment of the market. We intend to achieve these from the focal point of our 4 strategic themes, utilizing both technology, dynamic capabilities, scale benefits and customers relationships.

“Our Service Proposition is to give our customers peace of mind through need-based insurance solutions and exceeding their expectations. We are committed to this by seeking to understand their risks and business objectives and providing insurance services to them.”

L- Mr. Emmanuel Otitolaiye, Chief Financial Officer, Linkage Assurance Plc; Mr. Lekan Otufodunrin, Executive Director, Media Career Development Network/resource person, and Mr. Segun Olalandu, Head, Strategic Marketing & Communications, AIICO Insurance Plc, during the National Association of Insurance and Pension Correspondents (NAIPCO) training workshop in Lagos on Tuesday.

L- Mr. Emmanuel Otitolaiye, Chief Financial Officer, Linkage Assurance Plc; Mr. Lekan Otufodunrin, Executive Director, Media Career Development Network/resource person; Mr. Segun Olalandu, Head, Strategic Marketing & Communications, AIICO Insurance Plc, and Mr. Chuks Okonta, Chairman, NAIPCO, during the National Association of Insurance and Pension Correspondents (NAIPCO) training workshop
L- Mr. Nona Awoh, notable financial analyst/Resource person, and Mr. Tope Adaramola, Assistant Executive Secretary, Nigerian Council of Registered Insurance Brokers, during the National Association of Insurance and Pension Correspondents (NAIPCO) training.

By Favour Nnabugwu

The Council of Ministers has approved the country’s draft unified insurance law in Egypt, the much awaited draft legislation closer to enactment.

The Cabinet decision states that the new draft law sets out specific and comprehensive rules for the insurance industry in Egypt, and organising the rules for supervision and control over them.

This will be for the Egyptian insurance market the first time a unified and comprehensive law that regulates supervision and control mechanisms over the practices of insurance activity in Egypt.

The draft stipulates that the Financial Regulatory Authority, exclusively, shall have jurisdiction over the establishment, licensing, and control of entities engaged in insurance, reinsurance, and associated services, professions and related activities.

New areas covered by the draft legislation include microinsurance, private insurance funds and litigation in economic courts. The draft also introduces new compulsory classes of insurance.

Previous media reports said that the minimum capital requirement for insurance companies will be increased.

The draft Bill consolidates four separate laws passed over the years. The first draft of the proposed insurance law was announced at the end of 2018.

Saudi Enaya Cooperative Insurance Company inked a non-binding Memorandum of Understanding (MoU) with Amana Cooperative Company to evaluate a potential merger between the two companies.

Both companies will conduct technical, financial, legal, and actuarial due diligence and engage in non-binding discussions on the terms and conditions of the potential merger.

Last month, the insurers started initial discussions to study the merger of the two companies.

Under the 12-month MoU, the parties agreed to implement the merger, in case it occurred, by way of share swap where Amana Cooperative will issue new shares to Saudi Enaya shareholders in exchange for all issued shares of Saudi Enaya.

The methodology used for valuation will be based on equity book value and the swap ratio between Amana Cooperative and Saudi Enaya shareholders shall be calculated using the respective adjusted equity book value per share as at a mutually agreed Cut-Off Date.

In a separate statement, Saudi Enaya said it appointed BMG as the financial advisor for the proposed merger.

Reinsurers are hopeful that the strengthening of their terms and conditions will follow through just as it started with 2019 renewals to continue in 2021

With the appearance of the coronavirus, they have additional arguments to convince cedants of the merits of rate increase in their favor.

Even before the health crisis, headwinds began to have an impact on the industry, with the list of factors affecting reinsurers’ finances only getting longer and longer. Back then, the concerns were numerous:u -uncertain development of natural catastrophe reserves;; inncreasingcost of claims,n and unfavorableevolution of the legislative, judicial, social and economic framework.

Moreover, nothing seems to be getting low interest rates off the ground for several years. The Covid-19 outbreak has exacerbated this situation while the reinsurance supply remains vigorous.

This apparently catastrophic situation conceals, however, factors which counterbalance these disastrous effects. After some hesitation, the market players quickly adapted to the virtual work environment. They are developing efficient risk transfer platforms in a sector connected to new technologies.

It is therefore in an unusual environment that treaty negotiations will take place on 1 January 2021, with just one unknown factor dominating this renewal: what impact will the health storm and economic difficulties have on reinsurers?

Reinsurance market’s capital

Since 2013/2014, the capital allocated to the market by traditional reinsurers has increased significantly. Estimated at 320 billion USD in 2013, it skyrocketed in 2019 reaching 394 billion USD. This increase is particularly noticeable between 2018 and 2019 with a 15% increase in traditional capital.

However, the strong growth in capacity is taking place in a market where many stakeholders who underwrite business beyond the break-even point are struggling to make profits. However, the financial market downturn at the end of 2018 and throughout 2019 has improved the investment prospects of reinsurers impacted by the multiple financial crises.

The estimated reinsurance capital for 2020 is down by nearly 2.3% at 385 million USD. The latter was already down by nearly 2% as at June 30 of the current year. Between 2016 and 2018, a series of natural disasters eroded the reinsurance capital. The adequacy between capital and risk regressed after each major event without, however, affecting the profession’s solvency ratios, which remain very comfortable.

Alternative reinsurance’s capital

Estimates show a regression of alternative capital (from 88 billion USD in 2018 to 86 billion USD in 2019) similar to that of traditional capital, even if on 30 June 2020 the observed decline is more significant.

This decline in alternative capacity is accounted for by the loss of certain assets backed by reinsurance commitments following the occurrence of the so-called secondary natural catastrophe claims: severe storms, bush fires, floods, etc.

The year 2020 has witnessed an upsurge in terms of frequency for this category of events whose severity is often moderate, particularly in the United States. The United States alone sustained ten of these disasters by 31 August 2020. This increasing trend can be observed in several regions of the world.