Different channel for marketing insurance products in Nigeria

INTRODUCTION

Marketing plays a vital role in the operations and organizations including insurance. Marketing as a profession put in place a set of mental, models that assist marketers’ distinctive perspectives on business challenges and solutions.

DEFINITION

Understanding the concept of insurance requires being guided properly. Therefore, a review of the marketing concept is essential.

Baker (1985) as quoted in Achumba (1994) says that marketing is the process of determining consumer demand for a product or services, motivating its sales and distributing it into ultimate consumption at a profit.

Taking a clue from the above, it is pertinent to note that marketing plays a prominent role in all activities of any organization whether for profit or not. This may be the reason why Kotler (2003) notes that marketing is typically seen as the task of creating, promoting and developing goods and services to consumers and businesses. Marketing managers seek to influence the level, timing and composition of demand to meet organization’s objective.

STRUCTURE OF INSURANCE MARKET IN NIGERIA

The formalised insurance market has been in existence for over 300 years. Although, it was introduced in Nigeria in the 1890’s. it is evident to note that that primitive form of insurance had existed before this time e.g. Esusu.

The different types of players in the market includes Private Liability Companies (LTD), public liability companies (PLC), Government companies (NAIC), specialist companies, composite companies and pools.

CHANNELS OF DISTRIBUTING INSURANCE PRODUCTS

There are recent concerns over the rebasing of the Nigerian economy which analysts fear might affect support for the federal government’s financial intermediation targeted towards pulling long-term funds for infrastructural development.

The insurance sector’s contribution to GDP dropped from 0.7 percent to 0.6 percent as a result of the backdrop of the sector’s inability to ensure efficient and effective distribution of insurance products within the country to the uninsured populace in the country.

INSURANCE BROKERS

The insurance market is conservatively controlled by the one well-developed distribution channel which controls about 70 percent of total premium generation in the market. Over time, insurance companies and regulators have focused solely on this channel that other channels which would have increased premium incomes are left unattended to.

In 2012, according to EFInA report, only 1.3 million Nigerians have taken up any form of insurance which is against the over 170 million population in Nigeria.

Brokers are professional registered by the Nigerian Council of Registered Insurance Brokers (NCRIB Act 2003) and licenced by the National Insurance Commission. They are expected to have higher professional exposition than other agents used in marketing insurance products. This among other reasons is why the Insurance Act 2003 provides that the brokers should be remunerated more than other agents.

The benefits of using brokers as one of the channels of distribution includes; improvement and saving in cost of premiums, carry risk improvement techniques, advised insureds on policy conditions which may not be understood by them (insureds) etc.

The distribution channels which have not been fully utilised despite recent inclusion of these channels into the distribution network of insurance products are the agency system, electronic, financial institutions, grassroots initiative, credit unions, co-operatives, retail chain store, utility companies and mobile phone operators, religious organizations etc.

INSURANCE AGENCY SYSTEM

This is a vital link between the insurance companies in Nigeria and the teeming populations in Nigeria. Companies set up the agency to help in the distribution of insurance products which the companies would be unable to sell directly to the prospective clients as a result of corporate focus of the brokerage system in Nigeria.

The Market Development and Restructuring Initiative (MDRI) was introduced Nigeria’s insurance industry by the National Insurance Commission (NAICOM) as part of the first phase of reforms of the industry. It basically entails, enforcement of compulsory insurance products, sanitization and modernization of the insurance agency system wiping out fake insurance institutions and introduction of risk-based supervision. The initiative which was meant to favour insurance agents who sell insurance to the grassroots while brokers focus on big corporate accounts.

The insurance agent is vital link between the insuring public and the insurer. The agent if well trained could effectively play the role of an efficient intermediary between the insurer and his insured in insurance transaction.

According to the Chief Consultant of NAICOM, Yemi Soladoye while speaking on the role of agents in growing insurance premiums and penetration stated that before the agency system was introduced through the MDRI, the number of agents that are registered by the commission was below 500. However, the agency system has grown to over 5000 today thereby improving the channel of distributing insurance products.

The agents have great capacity for marketing individual life insurance and other personal lines of businesses.

According to the former President of Association of Registered Insurance Agents of Nigeria (ARIAN), Mr. Kingsley Obuvie in an interview with Worldstage Newsonline, he stated that countries that witnessed strong insurance penetration had massive retail business initiative and strategy. He further stated that the low penetration we experience is a result of unattractive products to provide for the huge insurance market in Nigeria.

According to him, Nigeria has the potential of being the highest employer of labour if only we realise this and take our rightful position in the financial sector.

However, the cumbersome process involved in the organizational setting up, recruitment and training of agents requires a lot of funding which a lot of insurance companies may not be willing to consider because of low cashflow within the industry.

THE FINANCIAL INSTITUTIONS

This channel which is often referred to as Bancassurance saw a few insurance companies and banks going into partnership for the distribution of insurance products and this is beginning to deepen insurance penetration due to the large distribution outlets that these Nigerians banks have. According to some estimates, the channel is responsible for about N13biilion of insurance premium annually, that is about 5 percent of total industry revenues and appeared to be the fastest growing channel of distribution.

However, the channel have recently suffered a gradual death as a result of the CBN Circular prohibiting Nigerian banks from engaging in any form of Bancassurance. Since Bancassurance is globally acceptable practice, it becomes very disturbing as the apex bank’s opposition showed a complete deviation from global practice, analyst have argued.

According to Analyst, the CBN’s circular seemed to confuse insurance underwriting with Bancassurance. Insurance underwriting is the process by which licensed insurance companies assess the risk of a client, charge premium on such risk and then indemnify the client when a loss occurs. Retrospectively, banking regulation which the CBN referred to, showed that Nigerian banks are not permitted to carry out amongst other things insurance underwriting, this is contained in the CBN scope, conditions and minimum standards for commercial Bank Regulation No. 01, 2010.

THE ELECTRONIC CHANNEL

This channel of distribution is an innovation even though a lot of insurance companies have ventured into it a long time ago but lacked public awareness and perfection that could transform into sales. Some insurance companies are selling their insurance products through telecommunication platforms, e-commerce websites and the websites of insurance companies. Social media platforms (Twitter, LinkedIn, Facebook, Instagram and others) have also helped disseminate information, create product awareness, selling of insurance products to young energetic and teeming population in the country.

Whilst the electronic channel appears to be a very good innovation that can help deepen insurance penetration due to the convenience associated with distribution. Some of the players within this channel includes Fintech, EdTech, Logistic Technology companies and other viable aggregators embedding insurance products into their offerings and services.

OTHER CHANNELS OF DISTRIBUTION WITHIN THE INSURANCE ECOSYSTEM

These includes the use of credit unions, co-operatives, retail chain stores, utility companies, religious organizations, have all been embedded in the channels stated above. However, the recent reintroduction of tailor-made insurance products for the low-income earners and taking our religious affinity into consideration are the Micro-Insurance product and Takaful insurance.

The initiative is to capture the retail market using the channels of distributions to convey these products to the low-income earners who are under-served and under-insured. Micro-insurance seeks to provide insurance policies with low level of premiums, customised and easy to understand products as well as simple collection and claim processes.

Takaful insurance is a form of insurance that is compatible with the principles of Sharia (Islamic laws). It is compatible with the element of mutual insurance and ethical finance and open all regardless of faith. There is great potential for this business as there is significant Muslim population in Nigeria.

Taking the Micro-insurance and Takaful insurance as catalyst for effective actualization of the distribution channels earlier discussed, a successful antidote is the implementation of an efficient and agent/ partner model. In this model, an insurance provider partners with a distribution channel that is already reaching large numbers of low-income consumers for other reasons. These distributors are able to introduce an insurance product that makes the most sense for the particular market. Micro-finance institutions, credit unions, community development associations (CDAs), etc. are organizations with large access to low-income people should be able to make selling insurance products conducive.

CHALLENGES ASSOCIATED WITH INSURANCE DISTRIBUTION

The tenets of an efficient and effective distribution channels would not be achieved without a considerable assessment of the challenges that could encumber its success.

The first obstacle is demand and market study which is essential to understanding and creating a market demand for the well suited situation.

Another pitfall is the inability of quality insurance programme to suffice as a result of not having the right capabilities and resources. It is important to have access to resources with wealth of knowledge on product and experience of the products with the nuances of dealing with low-income markets.

The distribution through mass market channels without appropriate operational capabilities can overwhelm the operation, resulting in severe service issues.

A good measurement and control process in place that enables continuous improvement to the programme (distribution channels) in terms of value is pertinent to its long-term sustainability of a distribution network.

Also, insurance products being intangible in nature, unlike savings and credit which often have greater acceptance, insurers must honour their commitment of paying claims genuinely.

The products should also have clearer and easier policy conditions with few to no exclusions in order to reduce confusion on the part of policyholders.

The regulatory system should be put in place efficiently to monitor the lows and highs of the insurers and their products. A paradigm shift that will enable insurers to fully understand what it means to have a successful product distribution channel be encouraged too.

A reasonable sequitur from the above analysis is that there is huge market with huge potential for insurance in Nigeria. Insurers should make sure to follow a product development process that maximises potential success while minimizing development costs. They should always focus on developing and maintaining Simple, Understood, Accessible, Valuable and Efficient products. Managing these with innovation and creativity will lead to success.

Once the foundation is solid, an open market freely available in Nigeria, there can never be a better time. The lucre is lucrative enough while providing great benefits to people and collective development of Nigeria.

This article was first written for publication in 2014 and may not contain some recent developments within the insurance ecosystem at the moment. However, If you have questions relating to this article, your insurance policies or you do not understand the insurance technical jargon, we can assist you with a FREE POLICY REVIEW to ascertain the level of cover you have and how to achieve more with your insurance policy. We are just a chat away on WhatsApp.

By Favour Nnabugwu

 

President Muhammadu Buhari GCFR has approved the reorganization of the management of Federal Housing Authority (FHA) for effective service delivery with five new department added to the Ministry.

The five new structure to the minidtry has the following Departments: Estates Services; Housing Finance and AccountsM; Management  Services; Project Implementation and Research and Innovation Development

The objective of the new structure of the Authority is to enhance the implementation of the maintenance of FHA Estates across the country which will generate new businesses and jobs in the construction industry in pursuance of the Federal Public Assets Maintenance Policy approved by the Federal Executive Council.

 According to the Presidential approval, the two officers reassigned are the former Executive Director, Business Development, Hon. Abdulmumin Jibril who will now move to the Research and Innovation Development Department, and the former Executive Director, Housing Finance and Corporate Services, Mr. Ekpenyong Maurice  who has been moved to the Management Services Department. 

The newly appointed Executive Directors include Babakobi Mohammed Hauwa, Estate Services; Adamu Kure, Housing Finance and Accounts; and Chinonso Sam-Omoke ,Project Implementation.

The expansion of the Management of the Authority will bring a lot of advantages which include attraction of new investments in the construction of new estates across the country and generation of new jobs and businesses, in line with Mr. President’s promise of taking One Hundred Million Nigerians out of poverty.

PenCom shifts retirees enrolment deadline to December 31

By Favour Nnabugwu

 

National Pension Commission (PenCom) has extended the deadline for the online enrolment and verification exercise for retirees/ prospective retirees of Treasury Funded Federal Government Department and Agencies (MDAs) from October 29 to December 31, 2021.

The enrolment also include for those who retired from January to October 2021

National Pension Commission (PenCom) had developed an online application that automated the Annual Pre-Retirement Verification and Enrolment Exercise for retirees/prospective retirees of Treasury Funded Federal Government Ministry Department and Agencies (MDAs).

The online enrolment application went live on 1st September 2021 and Retirees and prospective Retirees were given a deadline of 29th October 2021 to conclude the enrolment process.

“This is to inform all Retirees and prospective Retirees that the Commission has extended the timeline for the online enrolment exercise from 29th October 2021 to 31st December 2021 in order to ensure that all eligible persons complete the enrolment process,” PenCom stated in a statement today.

Persons Eligible to Participate in the 2021 Online Enrolment, according to PenCom are employees of Federal Government Treasury-Funded MDAs including employees who retired from January to October 2021; employees who are due to retire from November to December 2021; and retirees that missed the previous enrolment exercises from 2007 to 2019.

The portal provided Self-Assisted Registration for the affected retirees/ prospective retirees and they are required to visit PenCom’s website www.pencom.gov.ng to initiate the online enrolment process by registering and capturing their employment details as well as uploading scanned copies of the required documents before proceeding to their respective Pension Fund Administrator (PFA) for the physical verification and enrolment.

Retirees/prospective retirees who are unable to complete the online registration could approach the Pension Desk Officer (PDO)/PFA-Assisted Registration of their respective MDAs or visit their PFAs for assistance

PILA to commission ‘PILA HOUSE’ November 2, 2021

By Favour Nnabugwu

 

 

The Professional Insurance Ladies Association (PILA), the body for women in Insurance across Africa, is puting fining touches to ts multimillion naira Secretariat, PILA House, which is set for commissioning on November, 2, 2021

PILA House located on the high brow Iwaya Road, Yaba, the Secretariat is set to become
the hub of all PILA related activities in Nigeria and other countries

President of PILA, Mrs Joyce Ojemudia stated the body cannot but acknowledge the contributions of all past presidents, as well as leading industry figures to the completion of the project.

Ojemudia also exressed special thanks
go to body’s donors, both corporate and individuals as well as the wonderful in-house committee that brought all these together.

“The official opening of our PILA House coming at this point is testament to the grit, passion, drive and focus that is synonymous with our Association”.

“PILA House is finally open for activities to the glory of God and the advancement of our industry,” She added.

All dignatries expected the grace the commissioning of the PILA House, she stated include the Commissioner for Insurance, Oludare Thomas and the Chairman, House Committee on Insurance, Hon Darlington Nwokocha as the Special
Guests of Honour while Dr Rabiu Olowo, Honourable Commissioner for Finance, Lagos State would be the Guest of Honour.

It will be recalled that the acquisition of the land for the PILA House was done in 2005 under the presidency of Yomi Onabanjo.

Over the next 16 years, various Presidents have contributed their bits to the project before being finally completed by the administration of Joyce Ojemudia.

Also, in line with its tradition; the association, in conjunction with the Chartered Insurance Institute of Nigeria, is set to host the annual PILA Night. This year’s event, themed Effizy Night, will hold at Park Inn by Radisson on November 3, 2021, a day after the commissioning of the Secretariat.

WTW announces rise in organic revenue to $1,97bn in Q3 2021

By admin

 

 

Global insurance and reinsurance broker, Willis Towers Watson (WTW), has announced a 4 percent or 7 percent on an organic basis rise in revenue to $1.97 billion for the third quarter of 2021, as net income improved year-on-year by a huge 646% to $903 million.

willis towers watsonFor the first nine months of the year, WTW’s revenue and organic revenue increased by 6 percent to $6.3 billion, while net income jumped by 250 percent when compared with the prior year period, to $1.8 billion.

At the same time, income from operations for Q3 and 9M 2021 totalled $1.1 billion and $1.5 billion respectively, representing year-on-year growth for both periods.

The broker notes that all GAAP profitability metrics include the benefit of the $1 billion it received from rival Aon following the termination of their proposed combination.

Within its Investment, Risk & Reinsurance (IRR) segment, revenue fell by 22 percent in Q3 to $172 million. WTW explains that the IRR revenue excludes the reinsurance line of business which has been reported as discontinued, following the agreement to sell the treaty operations of Willis Re to Gallagher.

However, on an organic basis revenue was up 10 percent at the IRR division, attributable to advisory-related fees that resulted in growth in both the firm’s Insurance Consulting and Technology business, and Investment business.

For the quarter, the IRR unit had an operating margin of 12.9 percent as compared to 9.3 percent for the same period in 2020.

The Corporate Risk & Broking (CRB) division saw its revenue increase by 7 percent in Q3 to $697 million, and by 6 percent on an organic basis, led by new business across M&A, FINEX, Construction and Aerospace in North America.

The CRB segment has reported an operating margin of 16.3 percent for Q3 2021, compared with 12.5 percent for the prior year period.

In Human Capital & Benefits (HCB), revenue improved by 7 percent, or 6 percent on an organic basis to $852 million. WTW attributes the organic expansion to growth in Talent and Rewards as a result of strong market demand for rewards advisory work alongside talent and compensation products.

For the third quarter of 2021, the HCB segment had an operating margin of 28.4 percent, compared with 26.3 percent a year earlier.

Revenue growth was also evident in the Benefits Delivery & Administration (BDA) segment, which saw revenue increase by 7 percent to $242 million. The BDA segment had an operating margin of -7.9 percent, as compared to -5.3 percent for the prior-year third quarter.

Commenting on the pandemic, WTW explains that while COVID-19 had a negative impact on revenue growth, particularly in businesses that are discretionary by nature, through 2020 and Q1 2021, it has seen greater demand for these services in both Q2 and Q3, which served to boost revenue growth.

Promisingly, WTW expects this trend to persist for the remainder of the year with some variability owing to further disruptions to the supply chain, workforce availability, vaccination rates and further social-distancing orders in jurisdictions where it operates.

For the full year 2021, WTW expects to achieve organic revenue growth of roughly 6percent, and an adjusted operating margin of between 19.5 percent and 20 percent on a continuing operations basis.

John Haley, WTW’s Chief Executive Officer (CEO), commented: “I am proud of the Company’s financial results for the third quarter and year to date. Our third quarter results are highlighted by solid revenue growth, continued margin expansion, and strong adjusted EPS growth.

“During the third quarter, Willis Towers Watson continued to evolve our leadership, structure and portfolio of businesses. We introduced our new Global Leadership Team (GLT) and our grow, simplify, and transform strategy.

We have significant core strengths which we believe will help guide our strategy that is designed to generate value for all our stakeholders, external and internal, going forward.”

Emirates Airbus A380 return to J’Burg, Spain, Brazil, three other routes from Sunday

By Favour Nnabugwu

 

Emirates is continuing to grow its Airbus A380 network. With the changeover to the IATA winter timetable planned for Sunday, October 31st, six more routes are set to welcome the Airbus A380 once more.

The returning flights will allow Emirates to exceed 1,000 rotations with the giant of the skies in November.

Emirates is hard at work, proving that the Airbus A380 still has a place in the post-pandemic aviation industry. With the airline’s entire 777 fleet already busy for some time, the airline has to use the A380 to add capacity now. By the end of the year, it hopes to have reactivated around 50 A380s and restored 70% of its capacity.

Six more A380 routes

Emirates will relaunch A380 flights to six destinations on Sunday. Some of these have seen the A380 since the height of the pandemic but have lost the jet again somewhere along the way. According to schedule data from Cirium, the A380 will return to the following routes:
AMS – Amsterdam – The Netherlands; GRU – Sao Paulo – Brazil; HAM – Hamburg – Germany; JNB – Johannesburg – South Africa; MAD – Madrid – Spain and MXP – Milan – Itlay

Each of the routes will operate daily through November, except for Milan, which has just 22 rotations scheduled for the month. With the addition of the above routes, Emirates will fly the Airbus A380 to 25 destinations from its Dubai home.

Increased capacities on other routes
While the A380 is returning to these routes, other routes will see increased capacities from Sunday. Frankfurt will be to welcome a double-daily Airbus A380 from Sunday. Meanwhile, Vienna’s capacity will increase, with 38 rotations planned for November, up from a daily A380 rotation in October.

Royal Exchange group announces 22% rise in underwriting profit to N11.12 bn

CAPTION

L –  Independent Director, Royal Exchange Plc, Hewett Benson, Chairman, Chief Kenny Odogwu and representative of Mazars Ojike & Partners, Miss Ngozika Onu at the event.

 

By Favour Nnabugwu

 

 

Royal Exchange Plc has recorded an underwriting profit rose by 22 per cent to N11.12 billion as a group

The group’s profit before tax appreciated by 13 per cent or N1.1 billion to N130 million when compared to a loss before tax of N1 billion recorded in 2019.

The Chairman of the group, Mr Kenny Odogwu, has said. at the 52nd Annual General Meeting (AGM) in Lagos

Odogwu said group-wide total gross written premium of N15.3 billion in 2020 while adding that gross written premium grew by eight per cent from N14.21 billion recorded in 2019.

He submitted that the total clams settled stood at N3 billion at the end of the year under review as against N3.18 billion paid to policyholders in 2019, translating to a positive variance of 16 per cent and increase in claims expenses of about N509 million.

He maintained that across the group, cost containment was effective throughout year 2020, as operating expenses reduced to N2.2 billion in 2020 when compared to N2.4 billion spent in 2019, indicating four per cent drop and N85 million savings and also translated to 23 per cent and N688 million saving as against corresponding year 2020 budgeted amount.

Speaking on the future of the company, the Chairman said the board and management are confident about the future of the company.

He assured they are doing everything within their power to ensure the future of the company is brighter and better.

Explaining the company’s efforts to recapitalise, he said while the Royal Exchange General has concluded its recapitalisation process, they are on course to conclude that of life business.

On technology he said: “The new world class software we acquired and deployed to our insurance subsidiaries has started yielding positive fruits by making our workforce seamless.”

On the company’s digitalisation plan he said: “In order to remain competitive as a fledging insurance superpower and in line with our strategic implementation of our digitalization plan, the newly upgraded website has many features including call-to- action/sale capabilities which is Customer focus.

“Clients can now log in and purchase insurance cover online and our call-centers too is now up and running with 24- hour facilities to attend to enquires.”

Coordinator Emeritus, Independent Shareholders Association of Nigeria (ISAN) Sir. Sunny Nwosu commended the company for its outstanding performance in 2020.

According to him despite the difficulty experienced during the COVID-19 the company was able to present a better financial indices.

However he implored the company to support the shareholders with dividend payout, adding that things are tough in the country and the minority shareholders needs to be put into consideration when crucial issue such as dividend is being discussed

FG, States, LGs share N740 bn

By Favour Nnabugwu

 

 

The federal, states and Local governments have shared the sum of N739. 965 billion as federation revenue which was earned in the month of September.

This was contained in a communiqué issued at the end of the virtual meeting of the Federation Account Allocation Committee (FAAC) for October, 2021.

The N739.965 billion total Distributable Revenue comprised distributable Statutory Revenue of N577.765 billion, distributable Value Added Tax (VAT) revenue of N159.096 billion and Exchange Gain of N3.104 billion.

In September 2021, the sum of N126.272 billion was the total deductions for cost of collection, statutory transfers, savings and refunds. The balance in the Excess Crude Account (ECA) was $60.860 million.

The communiqué confirmed that from the total Distributable Revenue of N739.965 billion, the Federal Government received N301.311 billion, the State Governments received N220.272 billion, while the Local Government Councils received N164.176 billion. The sum of N54.206 billion was shared to the relevant States as 13% derivation revenue.

The distributable Statutory Revenue of N577.765 billion was available for the month.

From this amount, the Federal Government received N276.008 billion, the State Governments received N139.995 billion; while the Local Government Councils received N107.930 billion.

The sum of N53.831billion was given to the oil producing states as 13% derivation revenue.

In September 2021, the gross revenue available from the Value Added Tax (VAT) was N170.850 billion.

This was lower than the N178.509 billion available in the month of August by N7.659billion.

The sum of N4.920 billion allocation to NEDC and N6.834 billion cost of revenue collection were deducted from the N170.850 billion gross Value Added Tax (VAT) revenue, resulting in the distributable Value Added Tax (VAT) revenue of N159.096billion.

From the N159.096billion distributable Value Added Tax (VAT) revenue, the Federal Government received N23.864 billion, the State Governments received N79.548 billion and the Local Government Councils received N55.684 billion.

The Federal Government received N1.438 billion from the Exchange Gain revenue of N3.104 billion. The State Governments receive N0.729 billion, the Local Government Councils received N0.562 billion, while N0.375 billion was shared to the relevant States as 13% derivation revenue.

According to the communiqué, in the month of September 2021, Petroleum Profit Tax (PPT), Oil and Gas Royalties and Excise Duty increased significantly, while Companies Income Tax (CIT), Value Added Tax (VAT) and Import Duty decreased marginally.

It was gathered that the federal government rescinded its earlier decision to deduct the controversial $418 million from the funds from states and local governments’ allocation in order to pay consultants who claimed that they assisted the two tiers of government in securing Paris Club over-deductions from the federal government.

Sources at yesterday’s FAAC meeting revealed that the decision to suspend the deductions was to avoid a delay in the sharing of the monthly revenue which could lead to the failure of the three tiers of government in meeting their financial obligations, including the payment of workers’ salaries.

It was learnt that last week’s meeting had agreed on all indices and sharing concluded but for the issue of the deductions from the allocations of the states and the LGs, which brought the stalemate.

The suspension of the deductions, sources said was to enable the parties “sort things out” before a conclusive action would be taken at subsequent FAAC meetings.

NGX Group records 26.5% profit growth to N1.73bn in 9 months

By Favour Nnabugwu

 

The newly listed NGX Group Plc, the holding company of Nigerian Exchange Limited (NGX), has reported 26.5 percent growth in its Profit Before Tax (PBT) to N1.73 billion for the nine months ended September 30, 2021 as against N1.37 billion posted in the corresponding period in 2020.

The Group’s revenue for the period also grew to N4.39 billion from N3.78 billion, representing 15.9 percent increase.

Highlights of the Group financial statement released on the NGX today showed that total expenses was up 12.23 percent to N4.15 billion driven by 11.1 percent and 20.9 percent increase in staff cost and operating expenses respectively.

Total assets for the period rose by 3.2 percent to N24.32 billion from N23.57 billion.

It would be recalled that following its successful demutualisation on March and restructuring of the former Nigerian Stock Exchange and its related operations within the new NGX Group , the firm, on October 15, 2021, listed two billion ordinary shares by introduction on the Main Board of the Exchange, thereby giving minority shareholders the opportunity to buy into the Group.G

The Group Managing Director/Chief Executive Officer, NGX Group, Mr Oscar Onyema speaking on the listing, said: “The demutualisation of the Nigerian Stock Exchange created the opportunity to restructure and reposition the organisation to achieve our expanded vision to be the preferred and premier exchange hub for Nigerian businesses and the wider African economy.

“The most significant benefit of our listing on the NGX exchange is the ability it gives us to drive inorganic growth as we add new subsidiaries and business lines that complement our business.

“This new era is, indeed,very exciting for us and we look forward to many possibilities achievable from deepening our various partnerships.”

Hassan-Odukale is FBN largest shareholder – FBN Holding

By Favour Nnabugwu

 

 

 

First Bank Nigeria, FBN Holdings Plc, has explained to the Nigerian Exchange Limited, NGX how Tunde Hassan-Odukale is classified as the highest single shareholder of the bank through his related parties holding of 4.16 percent and 1.20 percent of shares respectively.

This is coming after a controversy on who becomes the highest single shareholder of First Bank Nigeria since Femi Otedola acquired 5.07 percent stake in the bank.

However, there has been speculation attributing 5.36 percent to Hassan-Odukale in what some people thought its a boardroom politics to prevent Otedola from becoming chairman.

In response to this speculation, Seye Kosoko, the company secretary, FBN Holdings said Hassan-Odukale is its largest single-holder.

Kosoko attributed Leadway Pensure PFA’s entire 2.11percebt stake in FBN Holdings to Hassan-Odukale, although they are pension funds invested by Leadway on behalf of the public.

Also listed in Hassan-Odukale’s favour by Kosoko is 1.36percent of “ZPC/Leadway Assurance Prem & Inv Coll Acct” which is also insurance funds invested on behalf of the public.

FBN Holdings appears to be classifying both as Hassan-Odukale’s personal investments.
Over the weekend, FBN Holdings had notified investors that Otedola’s equity had surpassed 5 percent

Before then, Hassan-Odukale’s stake was put at the territory of 3 percent

In trying to clarify its record with the NGX regulation, FBN said it classified Hassan-Odukale’s shareholdings into two because of his significant stakes in related parties.

“The reason for classifying the shareholdings of Mr. Tunde Hassan-Odukale and his related parties into two parts of 4.16percent and 1.20 percent respectively,” FBN Holdings said.

“We wish to reiterate and clarify for your records that the notification of the shareholdings of Mr. Tunde Hassan-Odukale as a Director of First Bank of Nigeria Limited and thus an Insider, was filed with the NGX and other relevant regulators on October 18, 2021.

“The first part of the shareholding classification (4.16percent), are shares held directly and indirectly by Mr. Tunde Hassan-Odukale. The second part of the shareholding classification (1.20 percent), are shares ascribed to Mr. Tunde Hassan-Odukale due to his influence and having significant control.”