Insurance operators charged to focus on MSMEs for penetration

By Favour Nnabugwu

 

 

The House Committee on Insurance and Actuarial Matters, Hon Rep Darlington Nkwocha said if the insurance industry wished to create great impact in penetration in the country, the sector should focus on nano, micro, small and medium enterprises NMSMEs.

The various segments of enterprises Nkwocha reckoned, will become the hub for insurance retail that will benefit the NMSMEs, the insurance providers and the regulator. Besides, he said Insurance Bill 2020 which he stated is about 70% done by the National legislature will be the bastion to grow insurance beyond limit and at the same time score well in penetration.

The Commissioner for Insurance, Mr Sunday Thomas, said the insurance industry is set to harness the four segments of enterprise that contribute 49% of gross domestic product GDP by providing the insurance protection that fits each segment; ‘nano’ (which was created recently LCCI to segment business that employs between 1-3 persons with a working capital from N1- N1million), micro, small and medium scale enterprises.

Thomas said the insurance input that is coming into the four segments of businesses when the embrace is accomplished, would give this critical section of the economy “the confidence to venture” and consolidate the gains of enterprise.

NAICOM helmsman said insurance protection for the MSMSEs is of utmost importance and its key development intervention of government for economic sustainability that is why the Commission is following set pattern of government to provide the enterprises with the lead to insurance protection it needs.

He speaks further on the importance of importance for the enterprises and the consequences for ignoringHe therefore challenged , “In Nigeria, all development interventions of the current administration have had components focused on enabling these MSMEs sprout and flourish but unfortunately, with little or no insurance content to deal with associated risks and ensure sustainability and guarding them against failure.”

With a close tab on the insurance benefits to the segments of enterprise in focus, the Governor of Lagos State, Babajide Sanwo-Olu, said insurance protection should be accepted as the safety net for unforeseen risks.

Sanwo-Olu said the federal, states including the Central Bank of Nigeria have created policies and incentives to sustain the enterprises in focus to make the economy strong. He therefore, challenged the insurance operators to design products and services that are affordable and understandable. The Governor was represented by the Commissioner for Insurance, Dr, Rabiu Olowo.

The Director General Nigerian Insurance Association, Mrs. Yetunde Ilori, admonished the MSMEs to link their businesses with insurance protection. She comments, “Whatever you cannot afford to loose should be insured.”

In his Introduction: benefits of Insurance to MSMEs, Abdulrasheed Babalola, informed the attendees that insurance protection offers financial protection, boosting production and facilitating access to finance.

CFI Speech at MSMEs sensitisation workshop in Lagos

WELCOME ADDRESS BY OLORUNDARE SUNDAY THOMAS, COMMISSIONER FOR INSURANCE/CEO, NATIONAL INSURANCE COMMISSION (NAICOM) AT THE SENSITIZATION WORKSHOP ON INSURANCE FOR MSMES AND STAKEHOLDERS ON AUGUST 5TH, 2021 AT THE LCCI, ALAUSA LAGOS

Protocol

I am delighted to welcome you to this workshop meant to educate and enlighten the Micro, Small and Medium Enterprises (MSMEs) on the benefits of insurance The importance of MSMEs to national development cannot be overstated. It is indeed the fulcrum of a nation’s growth and development.

MSMEs form the superstructure to stimulate mass enterprise growth and serve as a source of livelihood for the base of the pyramid population across all economies be it underdeveloped, emerging or frontier markets.

In Nigeria, all development interventions of the current administration have had components focused on enabling these MSMEs sprout and flourish but unfortunately, with little or no insurance content to deal with associated risks and ensure sustainability and guarding them against failure.

According to the National Bureau of Statistics, Micro, Small and Medium Enterprises (MSMEs) in Nigeria have contributed about 48% – on average – to the national Gross Domestic Product (GDP) in the last five years from a total of about 17.4 million enterprises (NBS 2019). They account for about 50% of industrial jobs and nearly 90% of activities in the manufacturing sector.

While some challenges still abound from infrastructure to funding, it is encouraging that the Federal Government through its deliberate policy of removing 100million Nigerians from poverty in the next ten years is taking on the challenges to build businesses and leverage them to create prosperity.
In addition to the efforts of the government at all levels, the spirit of entrepreneurship of Nigerians is driving creativity and productivity.

However, the concern is that whatever gain or progress made in this sector can be halted abruptly in the face of a natural or man-made disaster which can often prove daunting to surmount without any support. In particular, when MSMEs are affected by any mishap, the disruption produces not only direct business losses, but also indirect losses and economic ripple effects. The range of impact include job losses, debt overhang, and a relapse of households into extreme poverty.

While the risks that expose MSMEs to this type of vulnerability may not be within the scope of human control, what is within human reach is a deliberate risk management plan through Insurance. It gives you confidence to venture
Insurance is that product you buy when you think you do not need it because it may be too late to buy it when the need for it arises.
. Notwithstanding the importance of Insurance to lives and property, adoption and penetration have been low in Nigeria owing largely to a lot of challenges principal of which may be the inadequate product offerings that meet the needs of the consumers including the MSMEs.

Consequently, the MicroInsurance and Takaful are two insurance offerings carefully designed for affordability and inclusiveness to bring Insurance within the reach of one of the nations most valued contributors to the economy-the MSMEs. This will support the sector for speedy recovery when unforeseen situations occur.

Thus, NAICOM have undertaken to educate and drive enrollment for these products through this sensitization workshop.

The workshop has so far made stops at three cities in Nigeria; Kano, Kaduna and Abuja pulling MSMEs from these cities and their environs. At all locations, we received overwhelming responses in terms of attendance, engagement and enrollment. The average attendance per location have been over 1000 MSMEs. However, due to the prevailing pandemic and the need to adhere to the protocols, the number allowed in the hall today is restricted to 300 MSMEs.

Lagos state is a key stop for us for obvious reasons; first, Lagos has been Nigeria’s nerve center of commerce, the State hosts the single largest number of, MSMEs in the country, put at 11.5% of total. (NBS 2019)
Secondly, and more important, the current and past administrations of this state have demonstrated a continuous commitment to sustaining MSME growth.

Specifically, the constellation of deliberate polices, special programmes and projects, in collaboration with various agencies to boost capacity, access credit, enable trade are all commendable. Some of the State efforts that readily comes to mind and which have been supportive to the Federal Government efforts are: i. The Lagos State MSMEs Exclusive Fairs
ii. The N220 billion Micro and Medium Enterprises Development Fund (MSMEDF) to cushion the impact of COVID 19,
iii. Other State intervention programs
All of these efforts represent to us both the will and action to engender MSME growth.
It is with these assurance that we have anticipated and prepared, that we shall record much more significant outcomes here with this workshop.

The level of vulnerability of MSMEs to extinction by likely disasters – both natural and man-made is very high; we all witnessed the destruction of life and property during the #EndSars protest which may have killed some MSMEs and driven some persons further down the poverty line. The good thing which is our message to you today is that insurance will provide you the shock-absorber to withstand any of these unforeseen calamities when they do occur and help your reinstatement in business.

The NAICOM is committed to our mandate of providing diligent oversight to the insurance sector towards ensuring prompt settlement of genuine claims when insured event occurs. I dare say that the MSMEs sector is too important to be neglected as it is key to economic development of the nation and thus, must be guided and protected against failure. The encouraging responses validate that the products meet a critical need also that the appetite for players in the MSMEs sector to succeed sustainably is high.

To ensure that you are properly guided, let me inform you that we have 59 insurance companies; 510 insurance brokers, 4 Microinsurance companies and 4 Takaful companies licensed by NAICOM to operate. Be free to approach any of them for an appropriate and adequate insurance policy that meet your needs.

In conclusion, we believe that the conversations today in addition, will provide insights for us to learn from, to adequately protect the MSMEs as policyholders, ensure a safe and sound Insurance sector, as well as encourage innovation and product development that meet the specific needs of the MSMEs.

Your Excellency, delegates, colleagues in the insurance sector, the press, distinguished ladies and gentlemen, I thank you all for finding time to attend this workshop and I hope you leave here better informed and enlighten on the numerous benefits inherent in the consumption of insurance products. Finally it is my believe that you will take the necessary steps to get yourself, properties and business adequately covered by reaching out to a broker or an insurance company for your insurance needs.
Thank you for listening.

Violence in schools loses $11 trn lifetime earnings

By admin

Violence in and around schools severely impacts educational outcomes, and society pays a heavy price as a result, with an estimated $11 trillion in lost lifetime earnings, according to a new report by the World Bank

Preventing violence in and through school is therefore a prerequisite for girls and boys getting the education they need and deserve, and acquiring the skills, knowledge and values that provide the foundations for strong and inclusive societies.

While there is no doubt that education is transformative, simply going to school is not enough. Real learning, the process of receiving and distilling information, of thinking and creating and producing and socializing, is less likely to happen if a child is scared or traumatized.

This report demonstrates that violence in and around schools negatively impacts educational outcomes, and society pays a heavy price as a result (with an estimate of $11 trillion in lost lifetime earnings)..

Ending violence in and around school (VIAS) is essential to reap the benefits from education and ensure children’s well-being. Receiving an education of good quality is the right of every child, as enshrined in the Convention on the Rights of the Child.

Education plays a unique role in promoting respect for human rights, and contributing to safe and inclusive societies that do not condone the use of violence, but rather provide children with the skills they will need as adults to find peaceful solutions to conflicts.

VIAS is a threat to both schooling and learning, as well as to children’s well-being, health, and future earnings as adults. The World Health Organization (WHO) has defined violence as “the intentional use of physical force or power, threatened or actual, against a person or group that results in or has a high likelihood of resulting in injury, death, psychological harm, maldevelopment, or deprivation.” Violence is the result of an abusive use of force.

The harm can be actual or threatened. It can lead to injury or death, but also to trauma or other mental health symptoms. Violence is often multidimensional, as individuals are often subjected to multiple forms of violence and in multiple locations.

VIAS includes but is not limited to child victimization, physical and psychological exploitation, cyber victimization, bullying, fights, and sexual violence. It also includes violence by teachers such as corporal punishment, with potential negative impacts.

Overall, VIAS has major effects on children’s well-being and health, and through reduced attainment and achievement, it reduces earnings and productivity in adulthood.

Faces at NAICOM, MSMEs sensitisation programme in Lagos

CAPTIONS

L – Deputy Commissioner for Insurance, Technical, Alhaji Saliu Bello Abubakar; Director General, Chartered Insurance Institute of Nigeria, Abimbola Tiamiyu; Commissioner for Finance In Lagos State, Dr Rabiu Olowo, representing Gov. Babajide Sanwo-Olu; Commissioner for Insurance, Mr Olorundare Sunday Thomas and Chairman, House Commitee on Insurance and Acturial matters, Darlington Nwokocha at the ongoing Sensitization workshop for MSMEs organized by the National Insurance Commission (NAICOM) in Lagos

Lagos-Calabar Coastal Rail Gets FECs’ $11.174bn Construction Approval

By admin

 

Federal Executive Council, FEC, has approved the award of two contracts to the tune of N6.2 billion and N2.31 billion, respectively, for the construction of two power substations in Jigawa and Akwa Ibom states.

The council approved the acquisition of 20 per cent minority stake by the Nigerian National Petroleum Corporation (NNPC), in Dangote Petroleum and petrochemical refinery in the sum of $2.76 billion. This was as hope for the restoration of the country’s four refineries in less than eight years from now was raised yesterday.

Minister of State for Petroleum Resources, Chief Timipre Sylva, disclosed these at the end of the monthly FEC meeting in Abuja. Sylva also announced the federal government’s approval of $1.484 billion for the rehabilitation of both Warri and Kaduna refineries.

However, the Nigerian National Petroleum Corporation (NNPC), failed to meet its gross revenue projections in the first six months of 2021, hitting a huge deficit of N1.106 trillion during the period.

Speaking to newsmen at the end of the weekly FEC meeting presided over by Vice President Yemi Osinbajo at the State House, Abuja, Minister of Information and Culture Lai Mohammed said the meeting approved the memo for the ratification of the president’s approval for the award of the contract for the Lagos-Calabar coastal standard-gauge railway.

The information minister said, “This is a very old project, which we inherited. Under the former administration, an approval was given, but nothing was done, but today, the council has given approval to commence the Lagos-Calabar coastal route.”

According to him, the rail project is important to the nation’s coastal economy, which is why $11.174 billion is earmarked for it with a completion period of six years.

His words: “This particular route is very important because after the Lagos-Kano route, this Lagos-Calabar coastal route, actually will link all the coastal cities in the country.

“The proposed route alignment is to go from Lagos to Shagamu, Shagamu to Ijebu-Ode, Ijebu-Ode to Ore, Ore to Benin City, Benin to Sapele, Sapele to Warri, Warri to Yenagoa, Yenagoa to Port Harcourt, Port Harcourt to Aba, Aba to Uyo, Uyo to Calabar, Calabar to Akamkpa to Ikom, to Obudu Ranch, with a branch line from Benin City to Asaba, Onitsha Bridge and then Port Harcourt to Onne Deep Seaport.”

The minister also stressed that the commitment of the present administration to expanding and consolidating on the rail projects across the country informed FEC’s approval of the funds for work to commence immediately on the Kano-Jibia rail and the Port Harcourt-Maiduguri route.

Speaking also, Minister of Power, Sale Mamman, disclosed that FEC approved two projects for his ministry, including the construction of 2 by 60 MVA 132 33 substation at Gagarawa, Jigawa State, in favour of Messrs Power Control and Appliances Limited in the sum of N154,212,396.05.

“The second one is the award of the contract for the engineering, procurement and construction of 2 by 30 MVA 132 33 substation at Ibiono Ibom, Akwa Ibom State in favour of Messrs YEMEC West Africa Limited in the sum of US$6.2 offshore plus N1.8 billion onshore,” he said.

On his part, the Minister of State for Education, Chukwuemeka Nwajiuba stated, “Today, the Federal Ministry of Education presented two memos. The first one dealt with ratification of convention Nigeria had already acceded to which seeks to regularise the recognition of certificates and diplomats all across Africa.”

The second memo, according to him, dealt with the award of contract for the building of two blocks of social science complexes at Adamawa State University in Mubi for a total sum of N1,103,000,000, which is a TETFUND allocation that emerged from 2017 through 2021.

MTN takes $280m out of Nigeria

By admin

South Africa’s MTN Group has repatriated its last year’s dividend of around $280 million (R4.2 billion) from its local unit in Nigeria. The company reported the payout on Monday during the release of preliminary financial results for the six months to June 30, 2021.

The funds from Nigeria are part of approximately $650 million (R9.3 billion) in cash the pan-African telecoms giant returned from its subsidiaries.

The Johannesburg-based group had been struggling to get dividends out of its subsidiaries due to the challenges of securing foreign currency in Nigeria and some other markets where it operates.

As a result, MTN was forced to suspend dividend payout for the 2020 financial year. The company also cited other reasons for the suspension, such as the timing of proceeds from an ongoing asset realisation programme (ARP) and the impact of the Covid-19 pandemic.

Announced in March 2019, the ARP seeks to simplify the group’s portfolio, reduce debt and improve returns. Over a three-year period, the programme is expected to bring in proceeds of at least R15 billion ($1 billion).

“Cash upstreaming from Nigeria remained challenging in terms of securing foreign currency in the market. During 2020, we upstreamed the equivalent of approximately R286 million from Nigeria, with approximately R4.2 billion yet to be repatriated as of 31 December 2020,” the company said back in March.

The group has now fully secured its cash dividend from Nigeria, in what is one of the two positive developments concerning MTN that will come as a relief to shareholders.

In addition to the news from Nigeria, MTN also revealed  “positive developments” in a United States court case related to the group and its subsidiaries, MTN Afghanistan and MTN Dubai.

According to the company, the magistrate assessing complaints of alleged violations of U.S. anti-terrorism regulation had recommended the dismissal of the case.

The Group had argued that the court has no jurisdiction over the company given it does not operate in the U.S. It also claims the complaint “does not allege any conduct by MTN defendants that violated the Anti-Terrorism Act.”

After the news of repatriating money from Nigeria and progress in the U.S. court case, MTN shares reportedly finished 6% higher on Monday at R111.30 (around $7).

The group’s complete half-year results are expected to be released on August 12 and it has told investors to expect between 75% to 85% drop in profit or earnings per share (EPS). This is due to an impairment charge involving its Yemeni business and the decoupling of its operation in Syria.

The sale of MTN Group’s 75% stake in MTN Syria is part of ongoing attempts to exit markets in the Middle East over the next three to five years, with a plan to fully focus on core African markets.

MTN plans to raise about R15 billion ($1 billion) from shareholding sales in markets outside Africa, proceeds which will be used to reduce its huge debt of nearly R50 billion ($3.5 billion) for the year to December 2020 as well as allocate more capital investments in Africa by 2025.

In Nigeria, MTN, through its local unit, has earmarked ₦600 billion ($1.5 billion) over the next three years to expand broadband access in Africa’s most populous economy.

Mobile subscribers decline in Nigeria

For MTN Nigeria, results for the past half-year showed that service revenue increased by 24.1% year-on-year, despite the number of its mobile subscribers declining by 7.6 million (nearly 10%).

In December 2020, Nigerian authorities ordered telecom companies to suspend the sale of SIM cards (until April this year). The directive was part of efforts to verify the identities of all mobile subscribers, who were asked to link their phone numbers with national identity numbers.

“Operationally, our mobile subscribers closed H1 at 68.9 million, down 9.9% from December 2020. This was due to the regulatory restrictions on new SIM sales and activations, which was lifted on 19 April 2021,” MTN Nigeria’s CEO, Karl Toriola, said on an analyst call

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While user numbers fell, MTN Nigeria company managed to increase service revenue to ₦790.3 billion (about R27 billion, $1.9 billion) driven by a surge in data usage.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 27.6% to ₦417.2 billion ($1 billion) while transaction volume for mobile money increased by 280.8% year-on-year to 55.6 million. Its total MoMo active subscribers reached 6.1 million.

MTN Nigeria aims to sustain “double-digit service revenue growth ahead of inflation, driving 4G and rural network expansion,” Toriola Saif

FRSC promotes 267 Deputy Route Commanders, 181 others

By admin

The Federal Road Safety Commission, FRSC, has approved the promotion of 264 Deputy Route Commanders, DRC, to the rank of Route Commanders, RC, and 181 Assistant Route Commanders, ARC, to the rank of Deputy Route Commanders, DRC.

The approval came at the end of the meeting of the Commission yesterday, ratifying the resolution of the Establishment Committee of Commission on promotion of promoted officers, where the exercise was assiduously deliberated upon.

The Corps Public Education Officer, Bisi Kazeem, who announced the development via a statement issued in Abuja noted that the Chairman of the Commission, Barrister Bukhari Bello who over saw the entire exercise expressed delight over the attitude of precision and impartiality that formed the precursors to the whole process.

He quoted Bello as urging the newly promoted officers to show more commitment and rededicate themselves to achieving the Corporate mission of the Corps which is to eradicate road traffic crashes and create a safer motoring environment in the country.

Kazeem added that the Corps Marshal, Dr Boboye Oyeyemi, equally stated that the promotion exercise is part of the Commission’s drive towards rewarding excellence, diligence and hard work which is in line with the administrative philosophy of the present leadership of the Corps.

He admonished the Officers to be more committed noting that their development in the Corps offers them the opportunity to shoulder more responsibilities and charged them to put in their best in the course of their duties as the new rank calls for more focus, more dedication, commitment and passion.

In the same vein, the Commission had during the meeting, equally reviewed the first and second quarter performances of the National Drivers License Identity Management and Card Production System and pledged its determination towards enhancing the system and making the processes for the acquisition of the National Drivers License easier for all applicants irrespective of their locations nationwide.

According to him, “To enhance the general performance of the system, the Corps is keen on providing Mobile Drivers License Work Stations across the country. This move is geared towards entrenching ease of doing business, encourage patronage, and ensure the eradication of encumbrances encountered by applicants especially in remote areas.

The spokesperson also quoted the Corps marshal affirming that with the existence of the present Mobile Work Stations across the country, it is apparent that the demands of applicants within rural areas where there are no capture centres will be met and the challenges they often encounter completely eradicated.

WTW reports net income of N186m for Q2 2021

By admin

 

Re/insurance broker Willis Towers Watson has announced second quarter net income of $186 million, up from the $102 million reported in the prior year period
Revenue was $2.29 billion, an increase of 8% from the $2.11 billion reported a year ago.

Adjusted operating income was $409 million, or 17.9% of revenue, an increase also up from last year’s Q2.

The Corporate Risk & Broking (CRB) segment had revenue of $788 million, an increase of 12% from $701 million in the prior-year second quarter.

North America benefited from gains in connection with settlements and book-of-business sales in the quarter.

The Investment, Risk & Reinsurance (IRR) segment had revenue of $400 million, down 3% from $413 million in the prior-year second quarter.

On an organic basis, most lines of business contributed to the growth. Reinsurance growth was driven by new business wins and favourable renewal factors.

WTW’s IRR segment also secured $133 million in net income for the quarter, up from $119 million in the prior year quarter.

“We delivered very strong quarterly financial results, and I am proud of our results for the first half of 2021,” said John Haley, Willis Towers Watson’s Chief Executive Officer.

“In the second quarter we delivered broad-based revenue growth, continued margin expansion, and had significant earnings per share growth. I am encouraged by our growth momentum and the improving macroeconomic outlook.

“Our financial results reflect our talented colleague base, their perseverance, the strength of our client relationships and our compelling value proposition. We are focused on moving forward independently, with confidence in our ability to continue delivering significant value for all of our stakeholders.

“We are well-positioned to compete vigorously and independently across our businesses around the world and will continue to innovate and adapt to address evolving client needs