By Favour Nnabugwu
The National Bureau of Statistics, NBS, said household consumption expenditure rose year-on-year (YoY) by 1,414 percent points to 25.6 per cent in 2021 from -1.69 per cent in 2020.
However, the bureau said that government expenditure fell YoY by 80 percentage points to -34.03 per cent in 2021 from 61.5 per cent in 2020.
According to its Nigerian Gross Domestic Product (GDP) Report: Income and Expenditure approach for third and fourth quarter of 2021 (Q3,Q4’21) , the fall in Government expenditure was due to the efforts of government policies on COVID-19 during the period.
The report stated:”Overall, in 2021, real household final consumption expenditure inclined by 25.6 per cent from -1.69 per cent recorded in 2020. The observed trend in 2020 indicates that real household consumption expenditure declined in Q1 and Q2 accounting for negative growth rates informed by the COVID 19 pandemic.
“However, positive growth rates were recorded in Q3 and Q4 2020 as well as the Q4 ’21.
” In Q3 and Q4 2021, real general government expenditure grew by -39.5 per cent and -16.7 per cent respectively. “Growth rate in Q3’21 was lower by -138.6 per cent points when compared to the corresponding quarter of 2020. Similarly, Q4 2021 decreased by -28.8 per cent points compared to Q4′ 20.
“With annual growth rate standing at -34.03 per cent, the 2021 performance indicated lower growth compared to the preceding year of 2020 at 61.5 per cent due to the efforts of government policies on COVID-19.”
NBS also said that the nation’s annual GDP at basic prices rose by 77 percent points to 3.4 per cent in 2021 from -1.96 per cent in 2020.
“Nigeria’s real GDP at basic prices
In Q3 2021, the Gross Domestic Product inclined in real terms by 4.03 per cent YoY and recorded 3.9 per cent in Q4’21. This shows a sustained positive trajectory since Q4′ 20.
“However, on an annual basis in 2021, the Gross Domestic Product grew in real terms by 3.4 per cent on a YoY basis. This was significantly higher compared to -1.92 per cent recorded in 2020, and 2.27 per cent recorded in 2019. ”
The bureau further said that net exports and imports fell in 2021 resulting in a fall in the growth of net balance of trade in Q1-Q3 of 2021.
The report stated:” Net exports grew in real terms in Q3 and Q4 2021 by -38.2 per cent and 1.35 per cent respectively.
“On an annual basis, net exports grew by -55.7 per cent in 2021 compared to -13.17 per cent recorded in 2020.
” In 2020, imports of goods and services declined significantly in the four quarters of the year in real terms, recording -46.3 per cent in Q1, -70.05 per cent in Q2, -62.51 per cent in Q3 and -66.86 per cent in Q4 2020.
“On an annual basis however, the real growth of imports was worse off than 2019, at -61.94 per cent in 2020 compared to 27.26 per cent in the previous year. “Moreover, Imports grew in the four quarters of 2021 recording 55.06 per cent and 56.2 per cent in Q3 and Q4 2021.
“In response to falling growths in exports and imports in 2020, growth in net balance of trade (or net exports) was negative in Q1- Q3 2021 but positive in Q4 2021.
“On a YoY basis, Q3 recorded -38.2 per cent growth rate in real terms and Q4 indicated 1.35 per cent growth in the net trade balance.
“Annual growth rate of -55.7 per cent in real terms was recorded compared to -13.17 per cent in 2020.
“On a quarter-on-quarter basis, the net trade balance grew by –4.76 per cent and 6.38 per cent in Q3 and Q4 2021 respectively.
“This component accounted for 6.97 per cent of total real GDP expenditure at market prices in 2021.
“Operating Surplus grew negatively by -1.01 per cent in Q3, while 0.7 per cent was recorded in Q4’21 on a YoY basis in real terms.
“This indicator had recorded negative growth since Q2’20 but stood positive in Q4 ’21.
“The negative growth witnessed in the last three quarters of 2020 led to an annual real growth rate of -3.07 per cent, but improved slightly to -1.80 per cent observed in 2021. “
By Favour Nnabugwu
A civil society organisation under the aegis of Independent Hajj Reporters, (IHR), has vowed to monitor State Muslim Pilgrims Boards share the 33,976 Hajj 2022 seats allocation to intending pilgrims.
This is to ensure that each State are equitable distribution of Hajj seats to pilgrims,
NAHCON has allocated seats to states using a commendable 2019 airlift performance yardstick to States and private Tour Operators. A total number of 33, 976 were distributed to states and 9,032 set aside to be shared to registered private tour operators.
The Top 10 Hajj states like Kaduna received 2,419, Niger 2256, Sokoto 2404, Kano 2,229, Katsina 2146, Kebbi 2128 , Lagos 1562, , FCT 1538, Bauchi 1362 and Zamfara 1303
The civil society in a statement signed by its national coordinator Ibrahim Muhammed said it has instructed its members across the states to liaise with the leadership of the boards and agencies in the states to know the number of intending pilgrims that has been are able to meet the criteria set by the National Hajj Commission of Nigeria (NAHCON), and those that are eventually selected to perform 2022 Hajj.
Muhammed also noted “The allocation of 2022 Hajj Seats to States Muslim Pilgrims Welfare Boards follow certain criteria adopted by NAHCON and we urges States Pilgrims Boards to applied its agreed principle of first come first served.
The IHR said it is already aware that Saudi Arabian authorities have limited the maximum age of those who can perform Hajj 2022 to 65 years. This criterion alone, it said, will disrupt the philosophy of ‘first come first serve’ because there are pilgrims who paid much earlier than others but are above 65 years.
The CEO also said the projection of N2.5 Million as Hajj fare will also affect the outcome because not all those who are in priority list will be able to pay up the balance of their fare as at when due.
However, IHR advised that those who paid in 2019 should be given the right of first refusal before 2020, and 2021 depositors. This sequence of distribution should also supersede the NAHCON/SMPWBS’ 60/40 seat formula.
IHR further appeal to States Muslim Pilgrims Boards Executive Secretaries not to succumb to Politicians who may put pressure on them to allocate Hajj seats to their political foot soldiers at the detriment of intending pilgrims.
“With a few days to the primary elections of major political parties, desperate politicians may likely want to hijack Hajj seats as part of political favours to woo delegates or influence support to their candidature.
Saudi Arabia has allocated 43,008 Hajj quotas to Nigeria for this year’s pilgrimage after 2 consecutive years of suspending Hajj due to the Corona Virus pandemic.
By Favour Nnabugwu
As the Africa Insurance Organisation, AIO, celebrate it 50th anniversary next month, the president of the AIO, Mr Tope Smart, wants industry in the member countries to liaise with government to raise insurance penetration in Africa..
Smart said this could be achieved via solutions that improve access to insurance, the reputation of the African insurance industry and insurance awareness in Africa.
Furthermore, governments are increasingly using insurance to achieve public policy objectives and the AIO, again through its advocacy role, shall seek to advance the policy interests of Africa’s insurance industry, to create a conducive and enabling environment for insurance in Africa to thrive.
“The African insurance industry still suffer from very low insurance penetration rates when compared to global rates with an average of less than two per cent if we remove South Africa, this shows the weakness of our industry, and the vast potentials to be exploited”
The 48th AIO Conference will focus on one of the key global issues, Climate Change under the theme ‘Insurance and Climate Change: Harnessing the Opportunities for Growth in Africa’.
The AIO who doubles as the Group Managing Director/ CEO, NEM Insurance Plc recalled that In 2018 Lloyd’s publication, even a 1% increase in insurance penetration will reduce the disaster recovery burden on developing countries by 22 percent”
“We believe it is our mission to improve insurance penetration via solutions that improve access to insurance, the reputation of the African insurance industry and insurance awareness in Africa, he added.
On African Continental Free Trade Area (AfCFTA) he said is set to become the world’s largest free trade area in respect of the numbers of participating countries. It is one of the flagship projects of the African Union’s Agenda 2063: “the Africa We Want”.
“We believe that the AfCFTA could play a significant role in improving insurance services through liberalization (eliminating non tariff barriers and refraining from introducing new ones) and integration. The AIO shall advocate for integration of the African insurance industry in the AfCFTA implementation.
Activities to mark this milestone anniversary will hold in Nairobi, Kenya alongside our 48th Conference and Annual General Assembly. The host Kenya market and the AIO Secretariat have been working tooth and nail to make the celebration a memorable one.
However, this can only be achieved through insurance industry support. I wish to appeal to AIO members to come out in their numbers and give their flagship event its merited grandeur.
By Favour Nnabugwu
Funds invested in insurtechs reached 2.2 billion USD in Q1 2022. This is a decrease of 58 percent 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 percent 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
By Favour Nnabugwu
AXA Mansard, the Nigerian subsidiary of the French group AXA, has recorded a 14 percent increase in its turnover in Q1 2022.
Written premiums have gone from 25.08 billion NGN (65.96 million USD) as of 31 March 2021 to 28.64 billion NGN (68.74 million USD) one year later.
Life and health premiums increased by 58% and 24 percent respectively, while non-life premiums decreased by 5 percent
During the period under review, the net profit amounted to 390 million NGN (396 000 USD), falling by 85 percent compared to 2.63 billion NGN (6.92 million USD) posted during the first three months of 2021. This decrease is due to higher health claims and foreign exchange losses.
For the 2022 financial year, the Nigerian insurer expects to improve its operational performance, investments and underwriting.