All Posts in "Day: July 21, 2021"

Nigeria airlines commend FG on removal of 7% subcharge on imported parts

By admin

 

Nigerian airlines have commended the federal government for its response in removing 7 per cent surcharge on imported aircraft and spares and the Nigeria Customs Service (NCS) for the support it has given to the operators.

Chairman and CEO of Air Peace, Allen Onyema made this known today as he corrected misconceptions in the sections of the media following proceedings in the interactive forum at the Senate on July 6, 2021, when he made presentation as Vice Chairman AON on behalf of the airlines on the challenges the operators are facing.

According to him, “An online medium reported the meeting as an issue concerning Air Peace alone and brought ethnic dimension to an issue that concerns all airlines in the country, a report he condemned.

“The meeting was called by the Senate to discuss the reasons for the recent upsurge in flight delays and flight cancellations amongst other issues and challenges facing the aviation industry.

“It was on this occasion that AON made its presentation of challenges facing all the airlines. Our member airlines were present but we made an articulated collective presentation to the Senate, which I read as the Vice President on behalf of the association,” Onyema said.

“It was on this occasion that AON presented the issue of the partial implementation of the Finance Act 2020 which prohibits the payment of duties and VAT on imported aircraft and aircraft spares by the Customs Service.

“Of note, was the presence of a 7 per cent Surcharge on the assessed duties which was not supposed to be. This caused delays in the clearance of aircraft and aircraft spares leading to grounding of aircraft that would have been flying,” he further explained.

He said, “After the Senate meeting, the airlines contacted the Minister of Finance and Minister of Aviation on the aforementioned challenges and both Ministers, “as representatives of a responsible government, swung into action immediately.”

“AON, for the avoidance of doubt, commends the Federal Government for its unflinching support for the growth of indigenous investments in Nigeria. This was very evident in the manner the government got this challenge addressed immediately within 48hours to the joy of the airlines.

“We equally commend the Nigerian Customs Service for also assisting the airlines, including but not limited to Air Peace which was used as an example, in getting their aircraft spares and aircraft released. Our planes have since started flying,” he said.

Onyema said since the 7th day of July, 2021, airlines have been clearing their aircraft spares and aircraft without having to pay any 7 per cent surcharge.

“It is therefore very mischievous for any media outfit to be circulating videos of the presentation of AON complaints made on July 6th two weeks after the said presentation and two weeks after the issues had been resolved as though they are still existing.

The target of the sponsors of this falsehood is the Federal government of President Muhammadu Buhari. I personally frown at the ethnic angle presently circulating in the social media that the ‘fulani’ is destroying Air Peace.

“Those who want the country to go up in turmoil will never stop fanning divisive falsehood. The video was deliberately doctored to show only my face while obscuring the presence of the entire Senate committee members, Minister of Aviation and the leadership of all Aviation agencies in Nigeria.

“The target here is also me. No amount of deliberate intimidation, blackmail and falsehood will deter me from standing up for Peace and unity in my country. This has been my life since my childhood.

“It is very untrue that Air Peace is being dealt with by the ‘fulani’ rather the Federal Government led by President Muhammadu Buhari is very protective of every indigenous investment including those of the airlines,” he added.

He said that contrary to the insinuations that only Air Peace was singled out by Customs to pay those contested surcharges; it was all the airlines that were affected.

“Nobody is ‘dealing’ with Air Peace rather this government is very protective of Air Peace. This is evident in the government refusing to allow one Middle East airline from coming into Nigeria because its Covid-19 protocol was discriminatory and unfavourable to a Nigerian airline. Which airline is that? Air Peace of course.

“Those using the social media to destroy the country and promote hate should think of the consequences of their actions. Azman Air was affected and it is owned by a Fulani. Max Air was affected and it is owned by a Fulani.

“The list goes on. Why are we bent on spooling out falsehood that causes disunity and tremendous disaffection in the country? Why are people bent on promoting hate amongst our diverse peoples? For those promoting hate, the Rwandan story beckons on them,” he added.

The AON Vice Chairman said the present government, in its pursuit for the growth of indigenous airlines helped in getting the Bill removing duties and VAT from imported commercial aircraft and aircraft spares passed while the President wasted no time in giving his assent and signing into law, describing the move as commendable

Patoma Admin by — July 21, 2021 in Aviation 0
NiMet describes Lagos rainfall as unfortunate, urges resident to monitor update on Media channels

By Favour Nnabugwu

 

Nigerian Meteorological Agency (NiMET) has described as unfortunate, the heavy rain that occurred on the 16th of July 2021 in Lagos state and environs, which wrecked unquantifiable financial havoc with its accompanied flood and destruction of properties stating that the agency had made the prediction.

The agency also said it will continue to monitor the weather and give alerts as at when necessary and has urged the public to monitor along on their social media handles so as to keep up and prepare.

Recall that NiMET Forecast Office had on the 14th of July 2021 made a 3-day forecast and predicted ” cloudy skies are expected over the Inland and the coastal cities of the South with chances of morning rains over parts of Rivers, Cross River and Akwa Ibom states, it also said that later in the day rains are anticipated over parts of Anambra, Ebony, Enugu, Ekiti, Oyo, Osun, Lagos, Bayelsa, Cross River and Akwa Ibom states”.

On the 15th of July 2021, forecast was made again with respect to Lagos state, with new development and the trajectory suggested that cloudy skies and rains are expected in the morning afternoon and evening.

These forecasts anticipated a rainy day in the coastal city of Lagos state for 16th July 2021.

Consequently, the eventual heavy rainfall that occurred in Lagos state on the 16th of July 2021 was expected.

In a statement signed by GM/PR, Muntari Yusuf Ibrahim, confirmation of the weather forecast is posted on the agency’s Facebook and on YouTube.

In line with the forecast, continuous rainfall was observed over Lagos and its environs from morning to evening.

As the weather outlook for July 15, 2021, indicated, heavy volume of rainfall was observed with 125mm and 66mm of rainfall was recorded at our Oshodi and Ikeja weather stations.

This with other factors, caused flash flood episodes especially over Lagos Marina on Victoria Island.

The Synoptic Causes indicated the presence of very deep vertical extent of moisture and moisture laden winds up to about 3000m (700hPa) level in the atmosphere coupled with instability vortices and trough lines.

These features are usually accompanied by monsoonal rains otherwise referred to as continuous rainfall. The scale of these rains has been getting stronger spatially and temporally, hence leading to high impact and extreme weather events.

On July 16, 2021, at around 0130GMT, according to the Nowcasting Satellite Application Facility (NWCSAF), pockets of mesoscale convective systems started developing over the Atlantic Ocean.

The systems grew bigger, expanding northward and slowly moving westwards, making landfall at around 0545GMT over Lagos and its environs.

The system further intensified, became quasi-stationary and started to produce rainfall around 0800GMT till around 1630GMT.

During the Seasonal Climate Prediction (SCP) held on the 2nd of February 2021 by the Agency, a normal to above normal rainfall was the projection for the country followed with advisories on the socio-economic implications.

As such, high volume and high intensity rainfall are expected. These are capable of faster saturation of the soil making it difficult to hold more volume of rainfall, hence excess runoffs with the ability to flood the environment.

Nigerian Metrological Agency will continue to monitor the weather and give alerts as at when necessary.

NiMet advises that you follow us on Facebook and YouTube to monitor our forecast and avoid unpleasant calamities.

NiMet, providing weather, climate and hydrological information for sustainable development and safety of lives.

Patoma Admin by — July 21, 2021 in Aviation 0
Enterprise, SIC battle for top spot

By admin

 

Two insurance companies, Enterprise Insurance Company and the SIC Insurance Limited, have remained the dominant players in the market in recent years with a survey revealing that the firms have taken turns to occupy the top spot in the sector.

A report by international rating agency, Fitch, said over the past six years, SIC had occupied the top spot in four years only to lose it to Enterprise in 2018 and last year.

It said the two companies controlled more than a quarter of the industry’s market share last year at a time when 20 insurers were operating in the non-life business.

“In 2020, Enterprise secured 13.4 per cent market share while SIC dropped to 12.5 per cent. Enterprise wrote US$39.7 million premiums that year, just ahead of SIC’s US$43.4 million,” the report, which examined developments in the insurance market, said.

Top four

It listed the Enterprise Insurance, SIC, Hollard and GLICO as the top four largest companies that were engaged in close competition.

It said Hollard, Glico and Star (in third to fifth place in 2020) all reported premiums of between US$20m and US$30m in 2020, giving each a market share of seven to nine per cent.

“In sixth place in 2020 was Vanguard Assurance, which reported US$24.8m in underwriting activity that year, equivalent to about 7.2 per cent of total non-life premiums. Many of the leading non-life companies offer broadly similar portfolios of property and casualty, health, and liability lines to both household and corporate clients,” it added.

Threat from outside

The report said except South Africa’s Hollard, the six largest non-life providers were indigenous companies but noted that “multi-national non-life groups had been growing in stature over recent years.

It said many were now challenging the dominance of the market’s traditional leaders, citing Sanlam as one of the multi-nationals that had been steadily growing its exposure on the Ghanaian market.

“Building on its ownership of the Metropolitan brand in October 2014, the company acquired a 40 per cent stake in the non-life insurance business of Enterprise Insurance for around ZAR240m. Sanlam also owned 49 per cent of Enterprise Life and 40 per cent of Enterprise’s pension fund administration business”.

“Other South African firms have been moving into the country. In November 2014, IVM Intersurer, a significant investor in Hollard group, along with Hollard itself, took a majority stake in non-life insurer, Metropolitan and has since renamed its local operations to Hollard Ghana,” the report said.

Growth

It said the country’s non-life insurance market was one of the fastest-growing in the Sub-Saharan Africa (SSA) region and was undergoing a transformation.

It noted the efforts by the government and the NIC to create a more robust sector with emphasis on consolidation to improve balance sheets but said the approach had been a gentle one to date.

“Over the medium term, it is likely that premium growth will boost larger players in the market, with those with smaller market shares merging or dissolving,” the report said.

On product offerings, the report said services were broad, covering the majority of traditional non-life sub-sectors, including engineering, property, travel, goods in transit, health and motor.

It said the motor vehicle segment was a particular source of innovation within the non-life market, owing in large part, to the relative size of the coverage line which currently accounted for nearly half of non-life premiums written in the country.

“While motor vehicle cover remains a major source of revenue for Ghanaian non-life insurers, there have been concerns surrounding recent rises in claims activity within this segment of the market, due to a rise in road accidents,” it said.

Patoma Admin by — July 21, 2021 in Insurance 0
Munich Re’s Q2 profit hits €1.1bn; COVID losses in Life & Health exceed expectations

By admin

 

Global reinsurer Munich Re has said that while major-loss costs in its property / casualty (P&C) reinsurance operation came in below average for the second-quarter of 2021, COVID-19 had an adverse effect on its life & health (L&H) business in the period.

For the second-quarter of 2021, Munich Re has announced a preliminary net profit of €1.1 billion, which is up on the consensus of €808 million and also 90% higher than the €579 million recorded for the prior year Q2.

During the quarter, the reinsurer’s major-loss expenditure in P&C was below average primarily because of comparatively lower nat cat losses. Also, in P&C, Munich Re notes that COVID-19 related losses were in line with expectations for Q2 2021.

However, in L&H reinsurance, losses from the pandemic “clearly exceeded the expectation mainly due to the high mortality rate in India and South Africa.”
At ERGO, the global reinsurer’s primary insurance arm, Munich Re has reported only minor effects resulted from COVID-19 in Q2.

In Q1 2021, Munich Re reported COVID-19 related losses within P&C reinsurance of roughly €100 million, as well as losses of €167 million in L&H reinsurance.

This recent announcement from Munich Re is preliminary and so details around losses are limited. But while it will become clearer when the reinsurer publishes its Q2 2021 results in full, the pandemic does continue to dent the company’s underwriting, albeit now more so on the L&H side than the P&C side.

For the first-half of the year, Munich Re has announced a result of €1.7 billion, which is an improvement on the first-half of 2020, when the firm booked an additional €700 million of COVID-19 related losses.

With its H1 2021 result at €1.7 billion, Munich Re says it’s on track to meet its annual target of €2.8 billion, despite there being a greater chance of it missing its €400 million target set for the technical result in its L&H reinsurance business.

Patoma Admin by — July 21, 2021 in Insurance 0