All Posts in "Month: August 2022"

NASS urges FG to maximise CFTZ potentials to boost economy

CAPTION:

Prof. Adesoji Adesugba MD NEPZA leading members of House Committee on Commerce on tour of Calabar Free Trade Zone.

 

By Favour Nnabugwu

 

 

The House Committee on Commerce says the ongoing process to concession the Calabar Free Trade Zone (CFTZ) is a positive approach in unleashing the full potentials of the zone to significantly boost the country’s economy.

Deputy Chairman of the committee,  Hon. Richard Gbande said this on Wednesday when he led some members of the committee on an inspection tour of the zone in Calabar.

Recall that the management of the country’s only two public zones located in Calabar and Kano are on the verge of being handed over to private investors.

The lawmaker, representing Katsina-Ala/Ukum Federal Constituency of Benue State, explained that the public must understand what led the Federal Government to adopt the free trade zone scheme, adding that it was basically aimed to spike industrialization and economic growth.

He, however, said that the scheme required a long period of sustained funding to yield any significant benefit to the country.

Gbande further said that the Nigeria Export Processing Zones Authority (NEPZA) had so far performed well within its limited resources, adding that the impact of the scheme had reflected positively on the country’s Gross Domestic Product (GDP).

“We are in the Calabar Free Trade Zone to see the progress the business ecosystem is making and I can say that NEPZA has done well so far for keeping the country’s pioneer free zone intact and working.

“The committee has noticed some of the challenges which include outside infrastructure and the dredging of the Calabar Port.

“ In spite of these challenges, the enterprises, most of which are foreign companies are still functioning and helping to provide employment for the locals as well as serving the markets.’’ he said

Gbande explained that the zone would be brought to the required optimal level of competitiveness when handed over to private investors.

Prof. Adesoji Adesugba had used the occasion to express delight on President Muhammadu Buhari commitment and support in truly revamping the scheme to meet international standards.

The NEPZA boss explained that the Federal Government was committed to ensuring stable electricity supplies in the Calabar and Kano free trade zones, adding that the recent blackout in the Calabar zone had been addressed.

He further said that the government’s approval of funds for the development of infrastructure at the two public zones and two other new ones was an indicator of the president’s commitment to reposition the scheme.

According to him, the Authority has continued the execution of the power and other projects in Kano, Calabar, the Textile & Garment Park as well as the Medical Special Economic Zone in Lagos.

“Already, works are ongoing in these areas as infrastructure development remains the bait that can attract investors to the zones.’’ Adesugba.

Patoma Admin by — August 25, 2022 in Industry, Trade & Investment 0
Faces @ the inuaguration NAIPCO executives in Lagos

CAPTION:

L- Sovereign trust Insurance PLC, Segun Bankole; Chairperson of NAIPCO, Mrs. Nkechi Naeche-Esezobor; Director, Communication, National Insurance Commission (NAICOM), Rasaaq ‘Salami; Company’s Secretary and Head of Corporate Communications Department, Universal Insurance PLC, Chinedu Onyilimba at the inuaguration of newly elected executives of NAIPCO in Lagos today

 

 

The National Association of Insurance and Pension Correspondents, NAIPCO, inagurated the new executives of the association in Lagos today

Patoma Admin by — August 25, 2022 in Insurance 0
Micro Pensioners withdraw N22.4 bn from 118 MPC

By Favour Nnabugwu
Not less than N22.4biiion has been by Micro Pensioners as contingency withdrawal From 118 Micro Pension Companies, MPC as at July 2022, according  to the Director-General of the National Pension Commission, PenCom, Mrs Aishat Dahir-Umar
Dahir-Umar during a one-day workshop the Commission organised for Pension Correspondents Association, PENCAN in Abuja
Conversion from informal to formal sector hit N4.9bn from 430 Retirement Savings Accounts, RSA, while the total contributions under the Micro Pension Plan(MPP) has risen to N296.96 million  with 81.6m registered as at July 31, 2022,  about three years after its launch.
Represented by the Head, Micro Pension, Mr Dauda Ahmed in her paper, Micro Pension Plan: Bringing Financial Security
at Old Age to the Doorsteps of the Informal Sector.
PenCom DG said the commission’s commitment to creating awareness and holding social dialogue on the workings of the Contributory Pension Scheme(CPS).
“The MPP was conceptualised to expand pension coverage to the informal sector, including small-scale businesses, entertainers, professionals, petty traders, artisans, and entrepreneurs.
“The MPP was implemented to curb old-age poverty by assisting the workers, as mentioned above, to contribute while working and build long-term savings to fall back on when they become old,” she stressed.
Patoma Admin by — August 25, 2022 in Pension 0
Faces @ PenCom workshop for Pension Correspondents in Abuja

CAPTION:

L- Head, Investment, Mr Ibrahim Kangiwa, Head, Micro Pension, Mr Dauda Ahmed; Head, Corporate Communication, Mr. AbdulquadirM. Dahiru and Head, Benefit & Insurance, Mr Obiora Ibezeago during the  workshop at RockView Royal, Abuja

 

National Pension Commission, PenCom, organised a day workshop for Pension Correspondents Association of Nigeria, PENCAN in Abuja today

Journalists at the workshop

 

Patoma Admin by — August 25, 2022 in Pension 0
NIA parleys States on Third Party Motor Insurance. Kaduna, Kogi, Rivers, Ogun already in

NIA parleys States on Third Party Motor Insurance
* Kaduna, Kogi, Rivers, Ogun already in
By Favour Nnabugwu
The Nigeria Insurers Association NIA is working closely with states on enforcement of Third Party Motor Insurance as Kogi, Rivers, Kaduna and Ogun have already keyed in
The outgoing Chairman of the NIA, Ganiyu Musa while giving account of his stewardship for the past two years
Musa noted that the NIA is engaging with Road Traffic Officers of the Federation to drive integration of the third-party motor Insurance across the states following their request for the implementation of the system in all 36 states including the Federal Capital Territory (FCT).
Musa said the Association is working closely with the state vehicle inspection service on enforcement of Third Party Motor Insurance in the states Kaduna Kogi Rivers and Ogun states have already keyed into the project
The NIA chairman is optimistic that more states are already discussing with the association to finalise arrangements on how they can join.
The NIA chairman said the association is also working with Lagos State Building Control Agency as part of engagements on the implementation of Lagos State Building law Occupiers Liability and Builders Liability insurance.
Miss said the bill will passed into law before the end of the tenure of the ninth National Assembly
He told journalists that the much awaited Consolidated Insurance Bill 2020 will soon be signed into law
Musa said the association is alsoclosely monitoring developments on the insurance bill and would continue to pursue same doggedly until the bill is passed into law
He said the association participated in all the processes thus far and would continue to monitor developments in respect of the bill.
 “It is expected that the new law will have a positive impact on the insurance space in Nigeria and align it with global best practice”
“We must acknowledge the cooperation received from the Speaker Federal House of Representatives Rt Hon Femi Gbajabiamila; Chairman and members of the House Committee on Insurance and Actuarial Matters Also National Insurance Commission NAICOM and other stakeholders in the journey thus far.
The NIA chairman lauded President Muhammadu Buhari’s assent to the Finance Act 2021 which has now given a more acceptable definition of capital
Musa who doubles as Managing Director Cornerstone Insurance Plc noted that prior to this time the definition of capital in Insurance Act 2003 was defective and highly restrictive
We appreciate the Honourable Minister of Finance Budget and National Planning Commissioner for Insurance KPMG and members of our association for their support in seeing this process through We are optimistic that this major milestone achievement has removed the major encumbrance on the recapitalisation exercise.
Musa stated that the association has began engagements with Road Traffic Officers of the Federation to drive integration of the third party motor Insurance across the states.
He pledged that the association will continue to partner relevant government agencies on the adoption of the Nigeria Insurance Industry Database NIID Insurance Industry Portal NIIP.
Our aim is to achieve national coverage We remain hopeful that other states will appreciate the value of the platform and embrace it
According to him, The association continues to scale up its engagements with the government with a view to creating more understanding on the importance and role of insurance in the national economy”
Musa said the leadership of the association has been engaging representatives of Federal Ministry of Finance Budget And National Planning the office of the Head of Service and the Accountant General s Office on provision of appropriate data and payment of premium on insurance of government assets
He stated that the association will continue to maintain a very cordial relationship with the National Insurance Commission NAICOM in the overall interest of the market.
This is to ensure that matters of common interest are discussed and agreed to avoid friction We thank the Commissioner for Insurance and the entire management of the commission for the excellent relationship and support received
Musa further stated that the association will continue to complement the efforts of National Insurance Commission, NAICOM in their campaign on domestication of compulsory insurances in the states
Musa listed some of his achievements to include the completion of the Insurers House project which commenced in May 2018 NIA s 50th anniversary and hosting of the Africa Insurers Organisation AIO.
Patoma Admin by — August 24, 2022 in Insurance 0
Consumers pay N777bn for electricity in Q1 2022

By Favour Nnabugwu

 

 

Consumers paid a whopping N777 billion for power supply in the first three months of 2022, according to Electricity Distribution Companies, DisCos,

The latest revenue figure is 317 percent higher than the N186.34 billion recorded over a similar period in 2021.

The 11 DisCos in a statement under the aegis of Association Nigerian of Electricity Distributors, ANED, said they have also installed 129,352 distribution transformers since the power sector privatization of 2013.

ANED’s Executive Director, Research and Advocacy, Barr. Sunday Oduntan, in the statement, said new milestones were recorded despite lapses in the Nigerian Electricity Supply Industry, NESI.

While assuring consumers of the commitment of the DisCos to improving the services, he noted that they also recorded other feats such as “increased metering from 2.3 million in 2013 to 4.1 million as of 2020, a 78 percent increase.”

Oduntan also stated that the DisCos attained a “reduction of average Aggregate Technical Commercial & Collection Losses, ATC&C, estimated in excess of 56bpercent, pre-privatisation) to 46.3 percent increase in the number of registered customers from an estimate of less than 2 million customers, pre-privatisation, to 10.2 million; establishment of 1,035 customer centres and the creation of 32,573 jobs as against the 23,515 at the privatization period”.

On the recent restructuring that saw the takeover of five DisCos by banks, Oduntan described the action as “unjustifiable” as the Director General of the Bureau of Public Enterprises (BPE) is also a board member of the companies.

He said, “the recent restructuring of the DisCos is being worsened by a resort to violations of the rule of law – expropriation of DisCos outside the framework of the agreements reached under the privatisation of the assets”.

ANED condemned the arrest of the MD-CEO of the Benin Electricity Distribution Company, BEDC by elements of the law enforcement apparatus on August 15 2022.

ANED also cited the BPE’s ‘Performance Assessment of nine DisCos Comprehensive Report of December 2021’ which imdicated that several commitments and investments expected of the government were not been executed timely, leading to continuous structural issues impacting DisCos.

ANED said the operators of the distribution segment of the power sector value chain were ready to do more in a business environment that has respect for sanctity of contracts.

Oduntan claimed fur8, “BPE report also faulted the lack of minor reviews from 2015-2019 by the Nigerian Electricity Regulatory Commission, NERC, despite dynamic variables, resulting in N2.4 trillion of tariff shortfall accumulating between 2015-2020, as well as unfavourable regulatory guidelines negatively impacting DisCos source of revenue”.

Patoma Admin by — August 24, 2022 in News 0
Global Reinsurance premium up by 18% – Gallagher Re

By admin

 

The globally diversified major reinsurance companies of the world group grew their premiums by 18 percent in the H1 of 2022, suggesting diversification and footprint is proving beneficial to them strategically.

Reinsurance broker Gallagher Re reported that premium growth across the reinsurers that it tracks averaged 12 percent in H1 2022, supported by continued favourable pricing for commercial lines and reinsurance business.

For the H1 of 2022, the average combined ratio was 94.1 percent with all but three re/insurers posting a sub-100 percent combined ratio.

Across the H1, the nat cat loss ratio fell by half a percentage point, but in the Q2 in isolation, it rose by 1.5 percent to contribute 6 percent of the combined ratio, with attritional losses also up 1 percent to 61.8 percent

However, growth is far from even across the industry, with certain companies taking their opportunities to exert the advantage that global and line of business diversification offers to them.

Next, the often slightly less diversified, geographically and in terms of business line, North American and Bermudian re/insurers that as a group expanded by 14 percent in the half.

“Continued pricing gains for commercial lines business remained the key driver of premium growth in Q2,” Gallagher Re explained.

With Q2 of 2022 seeing accelerating premium increases, an impressive 9 of the 25 companies Gallagher Re tracks reported a greater than 20% premium increase year on year for that quarter, versus just 5 out of the 25 at the end of Q1.

The broker highlights that a number of management teams expect commercial premium increases to continue to outpace loss cost trends into 2023, but points out that the average attritional loss ratio increased by 1 percentage point versus the prior year in Q2 2022.

It’s also worth noting that natural catastrophe losses, as a contributor to the average combined ratio across the commercial insurance and reinsurance cohort, increased in the Q2 as well.

That, in a relatively benign quarter for major global catastrophe loss activity, but one where the frequency of severe weather peril impacts had continued to erode some of the profitability of re/insurers.

Going back to premium growth, it’s perhaps notable that some of the strongest growth in property lines of business comes from the global players, while many of those pulling back from property cat risk are in the middle-tier of the industry.

It’s not the same across the board though, as some global reinsurers are slashing cat exposure too, suggesting a bifurcation in strategy across the market, as some companies believe they have the underwriting expertise and diversification in their portfolios to absorb catastrophe exposures, even at the recent historical rates of frequency and severity.

After the mid-year reinsurance renewals, there has been a slight adjustment in the industry’s exposure to US coastal wind as a peril, which means any major storms this year could result in a different dispersion of losses across insurance and reinsurance firms, compared to prior years, which will be interesting to watch out for as hurricane season progresses.

Patoma Admin by — August 24, 2022 in Insurance 0
Non-oil export hits $2.5bn, increase by 62% in six months – Yakusak

  1. By Favour Nnabugwu
Nigeria Export Promotion Council (NEPC). has said that the Nigeria’s non-oil sector  recorded a leap as the country exported products worth $2.593 billion in the first half of 2022.
The Executive Director/CEO of NEPC, Ezra  Yakusak revealed this in Abuja during beriefing on the performances of NEPC  from January to June 2022.
 This represents 62.37 percent increase from the $1.59 billion was exported within the smae period in 2021, according to figures from the Nigerian Export Promotion Council (NEPC).

Yakusak explained that the figure represents 62.37 per cent increase as against $1.59 billion for the first half year in 2021 and 2020 which stood at $981.442 million, respectively.

He said, “in spite of the global economic recession that affected most businesses in 2021, the sector recorded significant growth in non-oil export.

“A total of 4,146,534 metric tonnes of product worth $2.593 billion were exported between January and June 2022.

He  said the “significant growth” is inspite of the global economic recession that affected most businesses in 2021. He informed that over 200 products ranging from manufacturerd,  semi-proccesed,  solid minerals, to raw agricultural products were exported in the period under review.
A break down of the  the top 15 exported product in the first half year of 2022 unveiled Urea/ Fertilizer as the biggest export as it recorded 32.49 percent of total export  while Cocoa Beans, Sesame Seed and Aluminum Ingots contributed 12.65 percent, 7 percent and 5.07 percent respectively.
The top three destination for Nigeria exports based on the value were Brazil, United States of America (USA) and India, out of the 112 countries across the Americas, Asia, Europe, Oceania regions and Africa.
“Regrettably, of the top 10 export destination of Nigerian products, none is an African country. Only Benin and Niger Republic made it to the top 15,” he said.
“Both Benin and Niger Republic are Nigeria’s immediate neighbors and as such
they are traditionally gateways for informal. export activities. This bi-annual report therefore indicates that the Council’s campaign at mainstreaming informal export is gradually yielding results,” he added.
He also noted that unlike what was applicable in the past, the trend of products exported from Nigeria is gradually shifting from its traditional agricultural exports to semi-processed/manufactured goods. While  manufactured products made up 36.28 percent of exports.
The NEPC Boss stated that raw agriculture products  made up 33.35 percent and  Precious Stones 13 .22 percent and others are 17.15 percent
He said,  a total of 572 companies participated in exporting Nigerian products in the period under review. “This is an indication that Nigerian businesses are gradually embracing the diversification campaign of the NEPC by venturing into non-oil exports.
Yakusak said none of Nigeria’s products was rejected within the period. He however assured that the federal government is working assiduously in a bid to reduce the incidences of export rejects.
“The NEPC has finalized arrangements to embark on an Inter-Agency Working/Fact finding visit to the United Kingdom to ascertain specific causes for rejection of imported commodities from Nigeria”.
“The mission is to provide Nigerian Export regulatory /facilitating Agencies the opportunity of observing the processes of agricultural commodities import procedures and to also interact with Port Health and Food Import Regulatory Agencies at the Boarder Control Points in the UK,” he added.
” I am optimistic that our vision to make the world a market place for Nigerian Non-Oil export is not just lip service but a commitment to the people of Nigeria. This commitment is borne out of the desire to build a prosperous future for our people through diversification of the Nigerian economy by increasing the basket of exportable products from Nigeria.
We have also commenced training and re-tr fling of our personnel. This is intended to close identified skill gaps and improve capabilities/knowledge of employees for optimum output. This is germane considering our current efforts/ campaign for massive investment in non-oil export.
Patoma Admin by — August 23, 2022 in Industry, Trade & Investment 0
Naicom recieves Estate Surveyor president, Johnbull Amayaevbo in Abuja

CAPTION:

R- Commissioner for Insurance Sunday Thomas welcoming President and Chairman of Council of the Nigerian Institution of Estate Surveyors and Valuers ESV Johnbull Amayaevbo in Abuja today.

 

National Insurance Commission, Naicom, received the President and Chairman of Council of the Nigerian Institution of Estate Surveyors and Valuers ESV Johnbull Amayaevbo  who paid a courtesy call on the Commissioner for Insurance Mr. Olorundare. Sunday Thomas.

The Visit is to strengthen collaboration and working relationship between the two agencies especially in the areas of insurance of public buildings, buildings under construction and professional indemnity for members of the professional body.

The meeting also discussed the need for the insurance industry to always ensure use of registered Estate Surveyors and Valuers in the valuation of their assets.

L- Alhaji Sabiu Abubaka r, Deputy Commissioner for Insurance Technical, President and Chairman of Council of the Nigerian Institution of Estate Surveyors and Valuers ESV Johnbull Amayaevbo  and the Commissioner for Insurance, Mr Olorundare Sunday Thomas during the Surveyors chief visit

 

 

 

 

Patoma Admin by — August 22, 2022 in Insurance 0
Coronation Insurance GWP hit N11.5bn in H1 2022

By Favour Nnabugwu
Coronation Insurance Plc, one of leading financial services company in the country recorded a gross written premium of N11.5 billion as at the end of the first half of this year, 2022.
The was a leap from the figure of N8.3billion posted in the same period of 2021.
The group premium income at as June stood at N9.3bn in the half year from N6.9bn posted in the previous year 2021
Underwriting profit for the period under review rose to N3.5bn as at the end of June 2022 from N892m in the same period of 2021.

group’s  Net Premium Income grew to N5.7 bn in Q2 of 2022 against N4.6bn recorded in the comparable period of 2021 Q2 while Net Underwriting Income as well  soared to N6.2bn compared to N5bn posted within the same period in 2021.

Claims paid grew to N3.1 bn in Q2 of 2022 against N2.8 recorded in the corresponding period of 2021 while Total underwriting profit rose significantly to N3.5 bn in Q2 of 2022 from N892 million posted with the same period in 2021.

Group’s Asset, grew to N9 bn in Q2, 2022 from N7bn recorded bn in Q2 2021 while Total Assets soared  to N43.9 bn against N39.8 bn recorded in corresponding period of  2021 .

As at June 30, 2022, the profit before tax stood at N613million from N405.6m in 2021.
For Coronation Insurance has a total asset hitting N43.9bn in half year 2022 from N39.8bn in 2021.
Total liabilities of the company increase from N18.2bn in 2021 to N23.3bn in the half 2022.
With the company coming forth with it’s result on time, the Managing Director, Mr Olamide Olajolo had said the Coronation Insurance teaming customers would began to see the result of investment in technology and other effect put together to make the company a spotlight.

“We are leveraging on their customers and we developed digital channels to ensure we access those customers.

He affirmed, “I am very confident that in the coming months, you will start seeing the results of these efforts. We have invested in technology, people and human resources.”

Patoma Admin by — August 22, 2022 in Insurance 0