All Posts in "Day: July 8, 2022"

BPE justifies sacks of Discos owners, says performance was abysmal

By Favour Nnabugwu

 

The Bureau of Public Enterprises (BPE) has justified the decision to restructure the ownership of four electricity distribution companies, DisCos, saying the performance of the sacked owners was abysmal.

The Director General of BPE, Mr. Alex Okoh in a statement in Abuja reacting to opposition of the takeover  by sacked owners of Benin, Kano, Kaduna and Ibadan DisCos, said the utilities were the worst performing in the market.

Okoh singled out Ibadan Electricity Distribution Company, IBEDC for particular mention, stating that the company’s performance was worse under the management of the sacked owners than pre-privatisation in 2013.

He insisted that restructuring was temporary as the government expects the commercial banks who now manage the companies to sell them to new investors soon, as they had neither the licence nor capacity to manage electricity companies.

Recall that three days ago the companies’ owners were sacked by the government after lender, Fidelity Bank called in their loans.

But the owners has resisted calling the takeover illegal. But BPE said the decision was commercial and contractual.

According to the agency, “It is envisaged that the majority interest in these DISCOs would be sold to competent private sector investors with the requisite technical and financial capacity to re-capitalize and manage these entities efficiently.

“As an interim measure, NERC and BPE met on an Emergency Basis and activated the Business Continuity Process and appointed interim Managing Directors in the affected DISCOs as follows:

Kano DISCO – Ahmad Dangana
Benin DISCO – Henry Ajagbawa
Kaduna DISCO – Yusuf Usman Yahaya

“It must be reiterated that some of the publications from the Core Investors of these DISCOs have been quite disingenuous. Beyond the financial issues I have just discussed, the DISCOs affected happen to be the worst performing ones.

“Ibadan is currently being managed by a so-called Receiver Manager as a sole administration. The Receiver Manager has absolutely no capacity to manage a utility and has not been authorised by the Regulator as a manager of a DISCO.

“Ibadan is the worst performing DISCO as per the Performance Assessment  review conducted in December 2021. Ibadan DISCO has actually retrogressed in terms of their critical performance parameters as contracted in the Performance Agreement signed with the Bureau. In fact, the DISCO under the management of the Core Investor, Integrated Energy Distribution and Marketing Limited (IEDM), has performed worse than before it was privatized.

“The performance of Benin, Port Harcourt, Kano and Kaduna DISCOs have also been abysmal.

“It is necessary to state categorically that the poor performance of these DISCOs represents a clear and present threat to the power sector as a whole and no responsible government and shareholder, would stand idly by and allow this situation to persist.

“BPE wishes to assure Nigerians that notwithstanding the challenges in the sector, Government remains fully committed to ensuring optimal performance in the power sector and will not shy away from taking the necessary decisive action to achieve this”, it added.

Mr. Okoh explained that the government took action of the BPE and NERC were informed by Fidelity Bank Plc on Tuesday, 5th July, 2022, that a call on the collateralized shares of the Core Investors of Kano, Benin and Kaduna DISCOs had been activated by the lenders. The Lenders’ consortium include AFREXIM Bank, Keystone Bank, Stanbic IBTC, as well as Fidelity Bank.

“It is important to note that the action is a contractual and commercial intervention and is between the Core Investors in these DISCOs and the lenders. BPE’s involvement is to protect the 40% shareholding of the Federal Government in the DISCOs.

“It was on this basis that new boards reflecting this action were constituted as follows:

Kano DISCO: Hasan Tukur (Chairman), Nelson Ahaneku (Member), Engr. Rabiu Suleiman (Member) Benin DISCO: KC Akuma (Chairman), Adeola Ijose (Member), Charles Onwera (Member) Kaduna DISCO: Abbas Jega (Chairman), Ameenu Abubakar (Member), Marlene Ngoyi (Member)

“BPE has nominated Bashir Gwandu (Kano DISCO), Yomi Adeyemi (Benin DISCO), and Umar Abdullahi (Kaduna DISCO) as independent Directors to represent Government’s 40% interest in the aforementioned DISCOs, during this transition”, he stated

Patoma Admin by — July 8, 2022 in Banking & Finance 0
NEPZA secures $100m investment in Lekki Medical/Pharms Special FZ

By Favour Nnabugwu

 

The Nigeria Export Processing Zones Authority (NEPZA) has secured an anchor tenant, Ash Biomedical Diagnostics Limited has invested initial $100 million capital in the production of variety of medical equipment in the freshly approved Medical/Pharmaceutical Special Free Zone in Lekki, Lagos.

In a statement released by Martins Odeh, the Head Corporate Communication of NEPZA, stated that  Prof. Adesoji Adesugba, NEPZA Managing Director, dropped the hint on Thursday after a meeting with the company’s team led by its Managing Director/CEO, Mr Ade Shodeinde in Abuja.

Adesugba said that the breakthrough hinged on the Authority’s relentless investment campaigns and drives across targeted investment potentials within and outside of the country.

The managing director explained that the company had scaled through series of tests and financial evaluations aimed at determining its capacity to carry out the expected tasks.

The NEPZA boss said that Ash Biomedical Diagnostics Limited had a solid investment capital base, adding, also, that the Authority became more convinced with the company’s capacity to deliver on the expectations after being exposed to its famous and worldclass foreign partners.
“Today can only be described as a turning point in our pursuit to bring in world class medical enterprises to the Lekki medical free zone.

“Recall that we announced in March 21 that scores of prospective anchor tenants came to us seeking to establish world class hospitals and pharmaceutical industries in the Lekki medical special free zone with the aim to end the unnecessary medical tourism abroad.

“Let me reiterate that we are indeed opened to bringing into the zone world class pharmaceutical companies to serve not only Nigeria, but Africa and the rest of the world from Lekki. The prospects of the zone are unimaginable and we are glad for securing an anchor tenant that will immediately open up the place for operation,’’ Adesugba said.

Adesugba further said that the Authority was still prepared to relax perceived stringent rules to ensure the comfort of anchor tenants, adding that the future gains that could accrue to investors who dared to first explore the zone usually would out-weigh the initial challenges.

The Lekki medical special free zone remains a business hot-spot with opportunities for other business chains ranging from transport/logistics, electricity, estate development, tourism/hospitality among others.

The NEPZA chief executive officer further explained that investors should prospect similar zones in Katsina and Ilorin, adding that the Federal Government expected the sub-nationals to leverage on all free zone types to fast track the nation’s industrialisation.

In another development, the Authority has agreed to midwife the forthcoming Nigeria (Kano) and Chinese Business Forum aimed at bridging investment exchanges between Nigeria and China.

Adesugba said this when he played host to Mr Wu Bai Cai, Directory Officer from the Chinese Embassy in Abuja.

The NEPZA chief executive officer explained that it was about time Nigeria and China stepped up their economic relations to a more sophisticated height, adding that NEPZA was assiduously working hard to use the free trade zone to ignite development as done by China.

Bao-Cai expressed delight in the meeting, adding that China had not hidden its interest in using its wealth, technology and human capital to assist in the development of the African continent.

He said, the forthcoming forum would be a platform where all areas of investment needs of the country should be evaluated for possible exploration.

“We have many Chinese businesses seeking to set up in Nigeria from where they can serve the rest of the world. Nigeria will become a hub for many Chinese manufacturing companies. For instance, we are looking for avenues to start the manufacturing of electric cars in Nigeria among others

The Kano State Government and Hon. Adamu Fanda, Chairman NEPZA Board are among the long list of the facilitators of the forthcoming forum

Patoma Admin by — July 8, 2022 in Industry, Trade & Investment 0
NAIPCO new executives takes over, Nkechi Naeche-Esezobor now Chairman

By Favour Nnabugwu
The National Association of Insurance and Pension Correspondents (NAIPCO) has elected new executive officers to manage the affairs of the association in the next two year as Nkechi Naeche-Esezobor, Publisher/Editor-in-Chief Business Today is now the new Chairman.
NAIPCO is the umbrella body for journalists covering insurance and pension sectors in Nigeria.
Other officers include:  Ngozi Onyeakusi, Publisher/Editor-in-Chief, Super News Online (Vice Chairman); Rosemary Iwunze, Insurance/Pension Editor, Vanguard Newspaper (General Secretary).
Others are Edet Udoh, Publisher/Editor-in-Chief, The Revealer Online (Assistant General Secretary); Matthew Otoijagha, Publisher/Editor-in-Chief, Business Wrap Online (Financial Secretary); Amaka Obiefuna, Publisher/Editor-in-Chief, News Corner Online (Public Relations Officer) and Adejoke Adeyemi, Insurance and Pension Editor, News Agency of Nigeria (NAN) as (Treasurer).
Speaking on behalf of the new executives, the Chairman, Nkechi Naeche-Esezobor thanked the members for the opportunity given to them to serve even as she promised all-inclusive leadership that will foster unity amongst members.
While thanking the outgoing executives for their sterling performance, she promised to build on the existing legacies and foundation laid by past leaders of the association.
She said her administration will focus on those activities and programs that are of significant importance to the welfare of members just as she solicited the cooperation and support of all members.
The formal handing-over from the immediate past executives to the new executives took place after the association’s 2022 Annual General Meeting in Lagos, yesterday.
Speaking before the formal handling over, the outgone Chairman, Chuks Udo Okonta, thanked his team and members for their cooperation which he said served as a catalyst for the success recorded during his tenure and charged the incoming administration to surpass the limit.
The formal inauguration of the new executives is slated for August 2022.
Patoma Admin by — July 8, 2022 in Insurance 0
CHI meets insurance claims to NAIPCO members

By Favour Nnabugwu

 

Consolidated Hallmark Insurance (CHI) Plc, has remain consistent to paying claims to Journalist on the N24million Personal Accident Insurance.

The Group Personal Accident Insurance covers death, permanent disability and medical expenses.

The company has for the second time this year, has paid accident claims to a member  of the National Association of Insurance and Pension Correspondents (NAIPCO), who had an incident recently.

It will be recalled that the company had promptly paid accident claims of a member who had an accident in February this year and another one now..

The recent payment however was for a member who had an accident when the vehicle she was commuting in was hit by an articulated vehicle and she fell off the vehicle while still in motion. She sustained injuries and was rushed to the hospital.

However, covered under the free group personal accident cover issued to NAIPCO, CHI stepped in to pay the hospital bills of the member while the victim has been discharged from the hospital and she is now in good health.

This gesture, according to the company, is part of its Corporate Social Responsibility (CSR) project, to ensure that journalists who are exposed to danger and hazard in the discharge of their duties are adequately protected.

Speaking on the development, the group managing director/CEO, CHI, Mr. Eddie Efekoha said that the gesture is to show the kind of values and respect his insurance firm has for journalism.

According to him, “Journalism is a risky profession, hence, the need to adequately provide insurance for those covering the insurance industry”

On his part, chairman, National Association of Insurance and Pension Correspondents (NAIPCO), Mr. Chuks Udo Okonta, thanked the insurance firm on the claims paid, stating that, this is a testimony that insurance works and that insurers are actually paying genuine claims.

Patoma Admin by — July 8, 2022 in Insurance 0
African insurers in the face of climate change

By Favour Nnabugwu

 

The African Insurance Organisation (AIO) and Faber Consulting have presented the annual “Africa Insurance Pulse” survey.

The 2022 edition dedicated a study on climate change and its impact on the African insurance sector.

The survey was conducted among insurance, reinsurance and brokerage companies operating in Africa.

According to the report, the continent is particularly vulnerable to the effects of climate change due to its exposure to extreme weather conditions, its low adaptive capacity and its poverty.

The ranking by risk makes floods and droughts the two most feared weather events in the local insurance market.

Despite the increase in the frequency of natural disasters, insurance demand and penetration remain low due to the lack of consumer awareness.

Patoma Admin by — July 8, 2022 in Insurance 0
Allianz to implement SDGs, commits N11.8m for youth employment 

 By Favour Nnabugwu
Allianz has affirmed its desires for the  implementation of  the Sustainability
Development Goals (SDG 8) globally.
The company also set aside €28,000 (N11.820 million) under its Social Impact Fund to support youth employment in the country.
The Managing Director/Chief Executive Officer of Allianz Nigeria, Adeolu Adewumi-Zer, stated this at the 2022 Annual General Meeting (AGM) of the National Association of Insurance and Pension Correspondent (NAIPCO) in Lagos yesterday.
She said over the next three years, Allianz will donate €28,000 (N11.820 million) in Nigeria to provide persons with digital skills that will enhance their ability to earn a living.
This donation, she said, will be made from the Allianz Social impact Fund which is dedicated to the implementation of Sustainability Development Goal (SDG 8) in many countries around the globe.
SDG 8 recognises the importance of sustained economic growth and high levels of economic productivity for the creation of well-paid quality jobs, as well as resource efficiency in consumption and production.
She said in Nigeria the SOS Children’s Village will benefit from the fund aimed at strengthening holistic youth development with the view of building an interactive inclusive society.
She said already SOS Children’s Village and Allianz are collaborating to promote youth employability and this has translated to Allianz
making an additional donation to the SOS Children’s Village in Nigeria this year.
As part of social impact project, Allianz Nigeria employees volunteer annually to join World Clean-up Day.
In 2021, over 100 employees across Nigeria picked up waste and gabage on a stretch of seven kilometres each in Lagos, Abuja, Port Harcourt, Ibadan and Benin cities.
Adewumi said Allianz is a forward looking company which cares for the future of its employees through its employee-focussed initiatives aimed at fostering team spirit, bonding and creativity through Cultural Day engagement activities.
“Allianz primary objective is to deliver innovative insurance products that work for our customer,” she said.
Patoma Admin by — July 8, 2022 in Insurance 0