The Economic Community for West Africa States, ECOWAS COVID-19 daily update as at November 15th, 2020 shows that Nigeria is placed on the 6th position as regards the recovery rate (93.7 percent) in West Africa
Amongst the 15 member countries of the ECOWAS, Nigeria is the 9th position on death rate (CFR – case fatality ratio) 1.79 percent and 11th position on active cases (4.5 percent).
According to the report, there are 197,872 confirmed cases, 2823 deaths, 185,891 recovered and 9,151 are active cases in ECOWAS countries. This data represents in Africa, 10.1 percent the confirmed cases, 6.0bpercent deaths, 11.2 percent recovery rate and 3.5 percent active cases.
As regards the death rate (CFR), Liberia tops with 5.44 percent followed by Niger 5.36 percent and Mali 3.62 percent while Guinea is the least with 0.5 percent
On recovery rate, Cote de Voire tops the list with 98.4 percent followed by Senegal 97.6 percent and Gambia 96.5 percent with the least coming from Togo with 71.8 percent
Togo has more active COVID 19 cases with 25.9 percent followed by Sierra Leone 20.8 percent and Mali 20.8 percent with The Gambia contributing the least with 0.2percent
As at November 15 2020, worldwide, there are 54,370,186 confirmed cases, 1,317,139 deaths and CFR of 2.4perceny
In Africa, there are 1,965,817 confirmed cases, 47,138 deaths and CFR of 2.4perceny
National Bureau of Statistics (NBS) said that the nation’s economy has entered into recession as the Gross Domestic Product (GDP) contracted for the second consecutive quarter by 3.62 percent in the third quarter of 2020.
Economic recession is defined as two consecutive quarters of negative Gross Domestic Product (GDP) growth. A negative GDP growth is also referred to as a contraction.
The National Bureau of Statistics, NBS, in its GDP report for Q3’2020 said that the nation recorded GDP growth of -3.62% in Q3’2020, though an improvement from the -6.10% growth recorded in Q2’2020.
The NBS stated: “Nigeria’s gross domestic product (GDP) recorded a growth rate of –3.62% (year-on-year) in real terms in the third quarter of 2020.
“Cumulatively, the economy has contracted by -2.48%. While this represents an improvement of 2.48% points over the –6.10% growth rate recorded in the preceding quarter (Q2 2020), it also indicates that two consecutive quarters of negative growth have been recorded in 2020.”
The NBS further stated: “Furthermore, growth in Q3 2020 was slower by 5.90% points when compared to the third quarter of 2019 which recorded a real growth rate of 2.28% year on year.
“The performance of the economy in Q3 2020 reflected residual effects of the restrictions to movement and economic activity implemented across the country in early Q2 in response to the COVID-19 pandemic.
“As these restrictions were lifted, businesses re-opened and international travel and trading activities resumed, some economic activities have returned to positive growth. A total of 18 economic activities recorded positive growth in Q3 2020, compared to 13 activities in Q2 2020.”
The NBS further explained that, “During the quarter under review, aggregate GDP stood at N39.089 trillion in nominal terms. This performance was 3.39% higher when compared to the third quarter of 2019 which recorded an aggregate of N37.806 trillion.
“This rate was, however, lower relative to growth recorded in the third quarter of 2019 by –9.91% points but higher than the proceeding quarter by 6.19% points. For clarity, the Nigerian economy has been broadly classified into the oil and non-oil sectors.”
On the performance of the oil sector, the NBS said: “The average daily oil production recorded in the third quarter of 2020 stood at 1.67 million barrels per day (mbpd), or 0.37mbpd lower than the average production recorded in the same quarter of 2019 and 0.14mbpd lower than production volume recorded in the second quarter of 2020
“Real growth for the oil sector was –13.89% (year-on-year) in Q3 2020, indicating a sharp contraction of –20.38% points relative to the rate recorded in the corresponding quarter of 2019. Furthermore, real oil growth decreased by –7.26% points when compared with oil sector growth recorded in Q2 2020 (6.63%). Quarter on quarter however, the oil sector recorded a growth rate of 9.64% in Q3 2020. The sector contributed 8.73% to total real GDP in Q3 2020, down from 9.77% and 8.93% respectively recorded in the corresponding period of 2019 and the preceding quarter, Q2 2020.”
On the performance of the Non-oil sector, the NBS stated: “The non-oil sector grew by –2.51% in real terms during the reference quarter, which is –4.36% points lower than the rate recorded in Q3 2019 but 3.54% points higher than in the second quarter of 2020.
The non-oil sector was driven mainly by Information and Communication (Telecommunications), with other drivers being Agriculture (Crop Production), Construction, Financial and Insurance (Financial Institutions), and Public Administration.
In real terms, the non-oil sector contributed 91.27% to the nation’s GDP in the third quarter of 2020, higher than its share in the third quarter of 2019 (90.23% ) and the second quarter of 2020 (91.07%).”
The Federal Government has offered a cumulative sum of N75 billion to the Academic Staff Union of Universities (ASUU) to address earned academic allowances and revitalization of universities.
FG and ASUU seem to have reached a compromise as the former has agreed to address earned academic allowances and revitalization of universities
The Federal Government also on Friday, November 20, 2020, agreed to exclude members of the ASUU from the Integrated Payroll and Personnel Information System (IPPIS) after months of negotiation pending
when the university lecturers will complete the development of its own payment platform- the University Transparency and Accountability Solution, UTAS.
Besides, government agreed to ASUU’s demand to pay their members’ salary arrears from February to June through the old salary payment platform – the Government Integrated Financial and Management Information System, GIFMIS.
The new offer was made by the Minister of Labour and Employment, Senator Chris Ngige after a seven hour meeting between the government team and the leadership of Academic Staff Union of Universities, ASUU, at the Ministry of Labour headquarters, Abuja.
Giving a breakdown of the N65 billion Senator Ngige said the Accountant General of the Federation, AGF, has offered to release N40 billion or in the alternative, N35 billion to be shared by all the registered trade unions in the universities after providing necessary evidence of having earned the allowance.
The Federal Government on Friday agreed to exempt the Academic Staff Union of Universities from the Integrated Payroll and Personnel Information System pending when the university lecturers will complete the development of its own payment platform- the University Transparency and Accountability Solution (UTAS).
The government also agreed to ASUU’s demand to pay their members’ salary arrears from February to June through the old salary payment platform – the Government Integrated Financial and Management Information System.
After weeks of negotiations and foot – dragging, the government offered to raise the Earned Academic Allowances to university staff from N30bn to N35bn and the revitalisation fund from N20bn to N25bn.
Cumulatively, the government, through the Accountant – General of the Federation, offered the lectures N65 billion to call off their eight – month old strike.
The government also shifted grounds on a number of issues, including the insistence that all the academic staff of the federal universities must be paid through the IPPIS platform.
Minister of Labour and Employment, Senator Chris Ngige, who read out the communique at the end of a seven-hour negotiation with ASUU members in Abuja, the funds will be shared by all the registered Trade Unions in the universities after providing necessary evidence of having earned the allowance.
Responding to the demand for immediate payment of 50 percent of the initial amount allotted for revitalisation which translates to N110 billion, Ngige said it was not possible because of paucity of funds.
He said, “The government however, offered to pay N25 billion based on the Memorandum of Action (MoA) of 7th February, 2019 signed with ASUU or in the alternative, urged ASUU to accept N30 billion with the reduction in the earlier Earned Allowances. Between the revitalisation and earned allowances, the FG has offered a cumulative sum of N65 billion.”
According to him, “The Federal Government reiterated that her offer of N40 billion or N35 billion whichever is accepted by ASUU was for all the universities unions: ASUU had proposed that N40 billion be paid immediately for all unions.”
The Minister said all Vice Chancellors are expected to submit details of the Earned Academic Allowances/Earned Allowances to the National Universities Commission, NUC, on or before November 30.
On the issue of withheld salaries, Ngige said the federal ministry of labour and Federal Ministry of Education will review the issue of ‘no work, no pay’ as stipulated in section 43 of the Trade Disputes Act Cap T8 laws of the federation of Nigeria, 2004 with a view to getting approval for the withheld salaries to be paid.
He said the lecturers will also be paid on the old platform pending the time.
“We are also reviewing how the lecturers will be paid on the old platform (Government Integrated Financial Management Information System ) until UTAS is ready for usage,” he said.
Also speaking, the National president of ASUU, Prof. Biodun Ogunyemi said ASUU will take the new offer to its members.
He said, “We will give the government our response by next week after discussing with our members.”
Recall that ASUU had demanded N110 billion for revitalisation which should be paid in tranches.
The university teachers had also insisted that the N30 billion the government promised to release for Earned Allowances was only for their members.
However the government said that the money was for the four university based unions, ASUU, Senior Staff Association of Nigeria Universities, SSANU, Non-Academic Staff Union, NASU and the National Association of Academic Technologists, NAAT.
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
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.
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”.
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.
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.
