All Posts in "Day: April 30, 2022"

FirstBank pays N56bn to Firstmonie agents as commission in 4 years

By Favour Nnabugwu

 

 

Nigeria’s leading banks, FirstBank Nigeria Plc, Friday, disclosed of paying N56 billion to FirstMonie agents as commission over four years.

This was made known by the Chief Executive Officer, FirstBank Group, Dr Adesola Adeduntan, in a presentation on ‘Banking for the Common Good’ during the US-Africa Legislative, Legal & Good Governance Conference held in Abuja.

According to Adeduntan, FirstBank is deliberately driving impactful programmes that are necessary to achieve shared prosperity for both current and future generations.

He also highlighted FirstBank’s Common Good Programmes, which include Financial Inclusion; Responsible Lending/Banking; CRS and Sustainability Actions.

He further explained that these programmes cover Agent Banking, FirstMonie, Value Proposition; Women Empowerment; Small & Medium Scale (SME) Business Support and Capability Enhancement Programme; and Employee Volunteer, Start Performing Random Act of Kindness (SPARK), Programme.

Meanwhile, he pointed that Banks’ success and ability to remain sustainable and relevant is intrinsically dependent on the long-term prosperity and wellbeing of the societies that are served.

Besides the core intermediation role of savings-investment linkage, capital allocation, trade development, and foreign exchange facilitation, Banks provide various support for the common good of the society- Employment Generation; Funding the Society; Inclusive Economic Growth; Infrastructure; and Economic Policy.

He said: “Through FirstBank’s Agent banking proposition, the Bank is creating sustainable socioeconomic value and empowering rural communities in unique ways.

“Over 35, 000 of FirstBank’s FirstMonie Agents are women, enabling us drive gender inclusive growth within rural communities

“Over 2 million individuals have been economically impacted via the jobs created through the FirstBank’s FirstMonie agent banking proposition

“Over N56 billion has been paid to agents as commission over the last four years, with the attendant multiplier effect on rural communities

“Over 50 per cent of FirstMonie’s agents are in the rural areas, contributing significantly to the development of the rural economy.

“Significant informal sector/rural area IGR collections across many LGAs are being powered by FirstMonie agents.

“The Agent network covers 772 of 774 Local Government Areas in Nigeria, bringing financial services closer to the people.”

He also assured that the Bank will remain committed to, “Developing tailor-made and scalable business solutions that serve the micro, small and medium scale businesses within the rural economy

“FirstBank empowers micro, small and medium scale businesses with the required finance to play critical roles in investment, growth and employment in their communities.

“Capacity Building through Business advisory clinics / Market storms; Targeted Financial literacy clinic for artisans in rural and semi-urban communities

Sessions delivered in Indigenous Pidgin language; Business Skills for micro, small and medium scale businesses; Basic business skills ( business record keeping, financial management, etc) targeted at micro, small and medium scale businesses in the rural and semi-urban areas

“Specialized and Bespoke Financing Offerings for SMEs; Tailored SME lending solutions for selected sectors, with focus on the agricultural value chain within the rural and semi-urban communities to fuel Nigeria’s economic growth.”

On impacting rural economy he (Adeduntan) said, “FirstBank is positively impacting the rural economy through its CSR and employee sustainability program, Start Performing Acts of Random Kindness (SPARK)

“Impacted the lives of over 20,000 widows and the less privileged in the rural communities, in partnership with International Women Society.
“Impacted over 50 Charities/NGOs that focus on the rural population through support in various initiatives and direct programme sponsorships, and FirstBank employees volunteered to teach financial literacy – over 80,000 students impacted across several secondary schools in both rural and urban areas have been impacted.

“Over 6,000 students in 20 secondary schools in rural areas impacted through awareness creation on the benefits of Acts of Kindness and the need to adopt kindness as a lifestyle.

“Impacted several economically disadvantaged patients and provided economic support to various hospitals in rural and semi-urban communities.

“Provided poverty alleviation support to numerous rural communities in 30 locations across Nigeria.

“Provided state-of-the-art ICT laboratory and perimeter fencing to secondary schools located in targeted rural and semi-urban communities.”

Meanwhile, he added that by supporting and promoting the socio-economic wellbeing of the society, Banks help to build a stronger business environment where everyone benefits.

However, he said, “Banks should continue to focus on the common good by driving inclusive economic growth and promoting the well-being of the society.”

Patoma Admin by — April 30, 2022 in Banking & Finance 0
Naicom showcases insurance at University of Uyo

By Favour Nnabugwu

 

 

The National Insurance Commission (NAICOM) has made plans to build an edifice at the University of Uyo dedicated to insurance studies.

This is part of the Commission’s bid to deepen insurance penetration in the country,

The Commissioner for Insurance, Mr. Sunday Thomas, who made the disclosure in Abuja on Thursday when he signed a Memorandum of Understanding (MoU) with officials of the university said the money for the building will be drawn from its Education Fund, which was earmarked to provide financial assistance to tertiary institutions who are the vehicles needed to drive insurance education and human capital development in Nigeria.

To deepen insurance penetration in the country, the National Insurance Commission (NAICOM) will build an edifice at the University of Uyo dedicated to insurance studies.

The Commissioner for Insurance, Mr. Sunday Thomas, who made the disclosure in Abuja on Thursday when he signed a Memorandum of Understanding (MoU) with officials of the university said the money for the building will be drawn from its Education Fund, which was earmarked to provide financial assistance to tertiary institutions who are the vehicles needed to drive insurance education and human capital development in Nigeria.

Thomas said the building project was a vivid recognition of the contributions of higher education in driving insurance growth.

“This is a knowledge-based sector and we realized that as the days go by, vulnerability increases in which case, we need to develop products that will be able to meet the needs of the populace and we need creative ideas.

“We need those who are cerebral to be able to reach out there and package things, products and of course the starting point is to get the knowledge. That is why we are bending backwards to develop the minds that will be able to not only teach, because part of those who are going to be beneficiaries will remain in the institution to teach others, some are going to come into practice, they need that knowledge, that is why we have ventured into this”, he explained.

He added that NAICOM will spread the building of insurance departments across the country with the firm belief that “the more of this we do, the more people get educated about what insurance is and of course the result will show”, he added.

The NAICOM CEO clarified that the funds for the building will be disbursed in tranches, adding that the total amount will be determined when the project is completed and commissioned.

To deepen insurance penetration in the country, the National Insurance Commission (NAICOM) will build an edifice at the University of Uyo dedicated to insurance studies.

The Commissioner for Insurance, Mr. Sunday Thomas, who made the disclosure in Abuja on Thursday when he signed a Memorandum of Understanding (MoU) with officials of the university said the money for the building will be drawn from its Education Fund, which was earmarked to provide financial assistance to tertiary institutions who are the vehicles needed to drive insurance education and human capital development in Nigeria.

Thomas said the building project was a vivid recognition of the contributions of higher education in driving insurance growth.

“This is a knowledge-based sector and we realized that as the days go by, vulnerability increases in which case, we need to develop products that will be able to meet the needs of the populace and we need creative ideas.

“We need those who are cerebral to be able to reach out there and package things, products and of course the starting point is to get the knowledge. That is why we are bending backwards to develop the minds that will be able to not only teach, because part of those who are going to be beneficiaries will remain in the institution to teach others, some are going to come into practice, they need that knowledge, that is why we have ventured into this”, he explained.

He added that NAICOM will spread the building of insurance departments across the country with the firm belief that “the more of this we do, the more people get educated about what insurance is and of course the result will show”, he added.

The NAICOM CEO clarified that the funds for the building will be disbursed in tranches, adding that the total amount will be determined when the project is completed and commissioned. .

He stated that the speed at which the fund would be released is highly dependent on the Institution’s ability to document and/or speed up the work/project involved.

He listed specific areas the Commission will be supporting the tertiary institutions to include; the establishment of Information and Communication Technology (ICT) Centre; scholarship for Masters and Doctorate degrees; provision of textbooks and journals on insurance and other related fields.

Others are: construction of administrative and/or vocational offices (structures); sponsorship of professorial endowments and sponsorship of accreditation for tertiary institutions interested in offering insurance as a course of study.

Thomas, who did not disclose how much will be spent on the building, said the value of the building remains the linkage that is created in human capital development which cannot be quantified.

Also speaking at the event, the Vice Chancellor of the University of Uyo, Professor Nyaudoh Ndaeyo said the institution was one of the Universities in Nigeria that opted to offer Insurance programmes.

He hailed NAICOM for graciously offering the University a helping hand by funding the construction of a building.

“We are here to sign Memorandum of Understanding and to also show appreciation on our part because they have trained our staff beyond what we have shown to them.

“Students or candidates hearing that a building is coming, that alone has led to an increase in the intake of students in that programme, everybody wants comfort so the coming of the building, offices for staff and classrooms for students is quite a commendable one”, he said.

On gradual release of funds as stated by the NAICOM CEO, Ndaeyo said the university management prides itself as one with a high level of integrity and a strong brand developed over the years.

“So, we know we have to protect that name to ensure that we maintain the quality”, he added.

To ensure transparency, tertiary institutions were selected based on the following criteria: all beneficiary institutions must be offering Insurance and/or Actuarial science at degree or National Diploma level; only institutions owned by Federal and State Governments were considered and only institutions with existing infrastructure, staff and department with insurance education were qualified.

Other considerations include: each geopolitical zone was qualified to get slots; all beneficiary institutions must have been physically inspected and certified by the Commission to ensure compliance and all successful institutions were required to sign an MOU to ensure compliance with terms of the award.

Patoma Admin by — April 30, 2022 in Insurance 0
Insurtech: fundraising falls in Q1 2022

By afmin

 

Funds invested in insurtechs reached 2.2 billion USD in Q1 2022.

This is a decrease of 58% compared to the 5.3 billion USD of the last three months of 2021.

In comparison with Q1 2021, the funds invested (2.6 billion USD) in the insurance startups have decreased by 15.4%. However, the funds remain higher than the figures raised in the same period in 2020 (1.4 billion USD), 2019 (2.1 billion USD) and 2018 (0.9 billion USD).

The average transaction in Q1 2022 reached 19 million USD, which is higher than the average transaction in 2018 (0.9 billion USD). It is higher than 2018 (14 billion USD) but lower than 2021 (33 million USD), 2020 (21 million USD) and 2019 (20 million USD).

For the record, insurtechs managed to raise 15.7 billion USD of funds in 2021 and recorded 58 M&A deals. In 2022, a quarterly record has been reached with 26 mergers closed within three months.

Patoma Admin by — April 30, 2022 in Insurance 0
20 PFAs meet recapitalisation of N5bn each as @ April 27, 2022

By Favour Nnabugwu

 

Not less than 20  Pension Fund Administrators (PFAS) operating in the country have met the N5billion recapitalisation requirement as at April 27, 2022.

The figure was disclosed by the National  Commission (PenCom) in a statement released made it clear that the 2p PFAs have complied with the Commission’s directive for the increase of the Minimum Regulatory Capital (Shareholders’ Fund) from N1 billion to N5 billion.

It will be recalled that the Commission had approved the recapitalisation exercise for the PFAs with a 12-month transition period from 27 April 2021 to 27 April 2022.

The exercise became expedient as the value of pension fund assets under management and custody had grown exponentially by 244 per cent, from N3 trillion in 2012 (when the previous recapitalisation was done) to N12.29 trillion (as at December 31, 2020).

PenCom noted that the sustained growth in assets implies greater fiduciary responsibilities that require more operational capacity by the PFAs. The urgent need to ramp up PFAs capacity to manage the increasing number of registered contributors and value of pension fund assets under management led to the exercise.

It is worthwhile to state that 10 PFAS had met the new regulatory capital requirement of N5 billion as at 31 December 2021, while the others intensified efforts to meet the deadline of 27 April 2022. This resulted in some mergers and acquisitions, which led to the reduction of the number of PFAs from 22 to 20, it stated.

The Commission approved the acquisition of AllCO Pension Managers Limited by FCMB Pensions Limited; and the merger between Tangerine Pensions Limited and APT Pension Funds Managers Limited and subsequent change of name of the merged entity to Tangerine APT Pensions Limited. In addition, the With the conclusion of the recapitalisation exercise, stakeholders, particularly RSA holders, should expect increased effectiveness and efficiency as well as improved service delivery from PFAS.

Commission also approved Norrenberger’s acquisition of IEI-Anchor Pension Managers Limited, after its acquisition of the majority shareholder, IEI PIc.

Patoma Admin by — April 30, 2022 in Pension 0