Multiple Taxation: A Worm Eating Insurance Industry Deeply Away

CAPTIONS:

Chief Executive Officer of National Insurance Commission, Naicom/ Commioner For Insurance, Mr Sunday Olorundare Thomas; Chairman, Nigerian Insurers Association, NIA, Mr Olusegun Omosehin, Cheid Executive Officerr of Federal Inland Revenue Services, FIRS, Mr Muhammad Nami and the Group Managing Director of Africa Reinsurance Corporation, Africa Re, Mr Ken Aghoghobvia

 

Multiple Taxation: A Worm Eating Insurance Industry Deeply Away

By Favour Nnabugwu

patomabusinessonline.com takes a deep look at the stress multiple taxation is putting on operators in the insurance industry in Nigeria, and reports that its elimination across the industry’s value chain is pivotal to its growth and survival.A local proverb says that he who wears the shoes know where it pinches him.True to this adage, insurance practitioners in Nigeria , like their counterparts in the other key  economic sectors (manufacturing, telecom, aviation,etc) have been lamenting bitterly about the damage multiple taxation is doing to their businesses, making some companies in this industry not to perform to their potential and have even forced some  out of business. Insurance operators lose about N23 billion to N36billion on yearly basis paying taxes.Tax and multiple taxes
A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or national

On the other hand, multiple taxation is the imposition of different types of taxes that could have come under one major tax form on businesses  by the various tax authorities and revenue agencies of the governments.

President Buhari had on January 13, 2020, signed into law the Finance Bill 2019. The new act amended the Customs and Excise Tariff Tax Act, the Petroleum Profit Tax Act, the Company Income Tax Act (CITA), the Personal Income Tax Act (PITA), the Value Added Tax (VAT) Act, the Stamp Duty Act and the Capital Gains Tax (CGT) Act in order to enhance their revenue generation potentials for the country.

There are nine major types of taxes in the country. They are: Companies Income Taxes (CIT); Value Added Taxes (VAT); Withholding Taxes (WHT); Petroleum Profits Taxes (PPT); Personal Income Taxes (PIT); Stamp Duties (SD); Capital Gains Taxes (CGT); National Information Technology Development Levy (NITDL) and Tertiary Education Taxes (EDT).

There are over 200 taxes currently being collected by federal, states and local governments agencies from companies operating in the country.

These types of taxes include but not limited to the waste treatment charge (paid by firms operating in Lagos); 1kobo telecommunications tax, advert and signage taxes; right of way charges; radio and television charges; business premises levy; National Health Insurance Levy; Nigeria Police Trust Fund Levy, as well as the recently introduced N10 per litre sugar tax on carbonated sugar drinks and beverages and several others.

Investigation by patomabusinessonline.com shows that in addition to battling with some unethical practices that have stained the image of the industry for decades in the eyes of the insuring public, such as premium rate cutting, delayed premium remittance, fake documents, etc, multiple taxation from the government agencies is yet another heavy load on the genuine operators in the industry.

Simply put, in section 16(2)(a) of the CITA, the profits of a life business insurance company are calculated by taking management expenses, including commission, subject to subsection (8)(b) of the Act from gross income (investment income and revaluation surplus).

For non-life businesses, section 16(1)(b) states that profits will be calculated for tax purposes by deducting the reinsurance cost and a reserve for unexpired risk (the premium corresponding to the time period remaining on an insurance policy), subject to subsection (8)(a) of the Act from a gross premium, interest and other income receivable in Nigeria,” he said.

Income taxation of companies in Nigeria is imposed by the Companies Income Tax Act 2007 (as amended). Section 16 of this Act provides guidelines for the taxation of life and non-life insurance companies in Nigeria.

Unfortunately, the current tax regime in Nigeria appears to be unduly unfair to insurance companies when compared with other companies in the financial service sector (such as banks).

Investigation further reveals that beyond the payment of Companies Income Taxes (CITA) ; Value Added Taxes; Withholding Taxes; Petroleum Profits Taxes; Personal Income Taxes; Stamp Duties; Capital Gains Taxes; National Information Technology Development Levy and Tertiary Education Taxes; funds mobilises by the operators are also being eaten up through multiple taxation which some of the operators have tagged as  ” A worm eating deeply” into the large chunk of their revenues generated and which should have been used for expansion, investment in technology and innovation of new products, staff capacity building,etc .

Deduction of withholding tax from re-insurance commission

Commenting on the issue, the
Executive Director, General Insurance, Leadway Assurance Plc , Adetola Adegbayi, argued that the insurance industry currently suffers from a complex tax structure that has always resulted in multiple taxation without understanding the complexity of insurance placements.

She cited the example of deduction of withholding tax from re-insurance commission as a fundamental problem because the practice did not recognize the fact that such commissions are not earnings but a reserve against reinsurance credit risk for premium liabilities passed through the books of the insurers.

Adegbayi said, “Brokers, agents, insurers and re-insurers pay different taxes, all of which principally come from the premium paid by one entity, the insured, due to the nature of the insurance value chain.”

Adegbayi, therefore, cautioned that unless all stakeholders came together to collate the entire structure of the tax burden along the insurance value chain, multiple taxation would continue to pose a threat to the well-being of the industry.

Mr. Taiwo Oyedele, Partner, West Africa Tax Leader at PricewaterhouseCoopers,  takes it further  by calling on the government to lighten the tax burden on the insurance industry through a review of the specific tax regime that concerns the sector.

“The industry is saddled with bearing the nation’s risks, it should not also be burdened with taxes”, he said.

Corroborating to this, Adebayo-Begun Oluwatomisin, Senior Adviser at KPMG Nigeria, sees multiple taxation in the insurance industry in Nigeria as an unfair and overburdening tax liability.

Sharing his perspectives during KPMG’s Webinar on Nigeria’s 2022 Budget and the Finance Act 2021, recently, he said that there was a need for the government
to  provide a tax structure that supports the industry.

” If risk is like a smouldering coal that can spark a fire at any moment, then insurance is our fire extinguisher,” he said.

Furthermore, the Group Deputy Managing Director of Africa Re, Mr. Ken Aghoghobvia,  noted that international businesses  ate also being affected with issues of double taxation.

He explained that income may be taxed in the country where it is earned, and then taxed again when it is repatriated in the business’ home country.” In some cases, the total tax rate is so high, it makes international business too expensive to pursue,” he said .

Aghoghobvia mentioned that there are three ways to tackle harmful tax competition.
Tax harmonisation eliminates interactions between countries. Three elements describe tax harmonisation: an equalisation of tax rates, a common definition of national tax bases, and a uniform application of agreed rules. The latter is particularly important since tax competition can take the form of lax application of tax rules, such as low audit rates.

Second, he explained that tax coordination is used when the set of countries which coordinate is given, and in which the coordination concerns only some tax policy instruments.

Third, he noted that tax cooperation is used when the set of countries is endogenously determined and is designates on situations where only some countries cooperate on tax policy and issues.

FIRS Response To Complaints


We spoke with the Executive Chairman of the  Federal Inland Revenue Service (FIRS), Muhammad Nami, on what has FIRS being done to address these challenges?He said that the issue of multiple taxations in Nigeria has been put to rest with the amendment to Section 68 of FIRS Establishment Act by the Finance Act 2021.The complaints from taxpayers about multiple agencies of government demanding payment of tax from them had been addressed.
He said that multiple taxations were never in line with the national tax policy thrust and was causing confusion for taxpayers and increasing their cost of compliance.“However, the amendment to Section 68 of the FIRS Act by the Finance Act 2021 has made it clear that FIRS is the only agency responsible for tax assessment, collection and enforcement.As such, taxpayers are to expect a streamlined tax administration regime going forward,” Nami said.

He said FIRS would use the instrumentality of the Finance Act 2021, through collaboration with taxpayers and key stakeholders to ensure adequate funding of the country’s budget and raise the requisite financing for national development.

He also noted that the Act provided a framework for equitable treatment, automation and deployment of ICT infrastructure, a single agency for tax collection and taxation of the digital economy among other critical interventions for improved tax administration in the country.

On equitable treatment, Nami said that in the past, situations abound where certain goods or services streamed into Nigeria by non-resident companies, especially to consumers (B2Cs), were not subject to VAT. This raised the issue of equity, as goods and services offered by domestic companies are subject to VAT.

“With the amendment of Section 10 of the VAT Act and our publication of the ‘Guidelines on Simplified VAT Compliance Regime for Non-Resident Suppliers,’ there is now a mechanism for applying VAT on such goods or services, affording the same tax treatment to both local and foreign supplies.

Similarly, companies deriving income from Nigeria without physical presence can now be assessed, like other companies with physical presence, on fair and reasonable percentage of their turnover in line with Section 30 of Companies Income Tax (CITA) .
Regarding the automation of tax processes, the FIRS Executive Chairman noted that “with the amendment of Section 25 of the FIRS Establishment Act, the Service can now deploy either proprietary or third-party developed technologies for tax administration.
Those that may still stand in the way of achieving this objective will now be liable to a daily penalty of N25, 000.

Restriction on carry forward of tax losses Section 16(7) of CITA places a limit of four years on insurance companies to carry forward their tax losses.

Through amendments made in 2007, other companies (including banks) can carry forward their tax losses indefinitely until they can be utilised against taxable profits.

However insurance companies can carry forward their tax losses for four tax years (i.e. years of assessment).
There is no obvious reason for the restriction of carry forward of tax losses for insurance companies since historically, insurance companies have not been the most profitable in the financial services industry.

Cap on deductions for unexpired risks

The unexpired risk reserve is required to cover the claims and expenses that are expected to emerge from an unexpired period of cover. As long as the period of insurance cover has not expired, companies are required by the Insurance Act to anticipate and make a reserve for possible claims against premiums received.

Section 16(8) (a) of CITA stipulates a cap on deductions for reserves, claims and outgoings for general insurance business. It limits the amount of deduction for unexpired risks to 25% of total premium for marine cargo and 45% of other classes of general insurance business. This is inconsistent with Section 20(1) (a) of the Insurance Act which prescribes time apportionment as a basis for determination of the provision of unexpired risks.

Also, FIRS 4 paragraph 15 requires an insurer to assess at the end of each reporting period whether its recognised insurance liabilities are adequate, using current estimates of future cash flows under its insurance contracts.

Minimum taxable profit

Section 16(8) (b) limits the deduction allowed for an general insurance company such that after the deductions are made and capital allowances claimed, there will be an amount of “not less than 15% of taxable profit for tax purposes”. This phrase means nothing and has been redundant since its introduction in 2007. It has been rightly ignored by insurance companies in respect of their general business. It should therefore be deleted due to the confusion it could create. Section 16(9)(b) suggests that after all limited deductions have been granted to life insurance companies, the company must have 20% of its gross income available as taxable profit. This is a type of minimum tax provision different from the general minimum tax provision in Section 33(1) of the CITA which is computed roughly as 0.5% of the higher of a gross profits, net assets and paid-up capital plus 0.125% of turnover above N500,000. This effectively means that life insurance companies are almost always subject to a higher basis of minimum tax compared to other companies, including banks and financial institutions. The restriction on minimum taxable profit for life insurance companies creates a competitive disadvantage and therefore should be removed through a legislative change.

Earned investment income for life insurance business for tax purposes

Under Section 16(5)(b) of the CITA, the income of a life insurance company which are subjected to tax include the whole income and other incomes. This raises an ambiguity on whether income earned from investment of life policy holders’ funds and annuities are taxable, even though these funds include undistributed amounts that would only be distributed upon maturity of the policy. Due to the nature of life insurance business, it is logical for investment income from such policy holder funds and annuities to be taxed only to the extent that they are distributed during the year. The provisions of Section 16(5) will therefore need to be amended to reflect this deferral and to remove the ambiguity.

Payment of value added tax (VAT) on commissions paid Another challenge faced by insurance companies in Nigeria is the practice of the FIRS requiring insurance companies to account for VAT on commissions paid to brokers and agents. Based on the VAT Act, all companies are only required to charge and pay VAT on their output or supplies, except in a few instances such as oil and gas companies that account for VAT on their input or purchases. In this regard, an insurance company is required to charge and remit VAT on their commissions earned and have no legal requirement to account for VAT on commissions paid. Any insurance company that goes the extra mile of deducting VAT on commissions paid is simply doing the FIRS a favour.

However, there should be no exposure for the company if it accounts for VAT on only its commissions earned. It would appear that a requirement for insurance companies to account for the VAT on behalf of its brokers and agents only exist because the insurance companies are easier targets for revenue collection than broker/ agents who may not be properly registered for taxes. However, there must be a legislative mechanism for the FIRS to impose this additional obligation on the insurance companies. A way forward will be for the key stakeholders in the insurance sector to have discussions with the tax authority, agree on a position based on the realities of the current business model and propose the required legislative change.

Conclusion

We are strong believers in the growth prospects of the insurance sector in Nigeria. Its enormous potential however requires growth focused economic and fiscal policies to be unleashed.

The government and regulatory bodies should also be engaged by industry stakeholders to consider tax incentives which will deepen the market for performing insurance companies e.g. companies that pay a minimum percentage of claims submitted for processing while concerted effort is made to educate the public on the immense benefits of insurance in this age.

Insurance is Precious industry
Let me conclude this write-up with the words of Tony Elumelu, the Chairman of Heirs Holdings Ltd, which he said recently during the 60th Anniversary of the Nigerian Council of Registered Insurance Brokers (NCRIB).

” We all understand the pivotal role insurance plays in any society.
Our industry provides the much-needed safety and security.
We allow our people to save, to think ahead, to secure their futures – what we do is precious.

Families receive financial security, assets are protected against hazards, and businesses continue to run,” he said.
Truly, what the insurance industry does is “precious”, and therefore, the
funds they mobilise, they should be allowed to deploying those funds for the broader benefit of our economy, and  not to be eaten away by  multiple taxes.
Ransomware remains a top cyber risk for businesses as new threats emerge- AGCS

By Favour Nnabugwu

 

 

 

Ransomware remains a top cyber risk for organizations globally while business email compromise incidents are on the rise and will increase further in the ‘deep fake’ era, according to  a new report from Allianz Global Corporate & Specialty (AGCS).

Ransomware is forecast to cause $30billion in damages to organizations globally by 2023. From an AGCS perspective, the value of ransomware claims the company was involved in together with other insurers, accounted for well over 50% of all cyber claims costs during 2020 and 2021.

Around the world, the frequency of ransomware attacks remains high, as do related claims costs. There was a record 623 million attacks in 2021, double that of 2020.  Although frequency reduced by 23% globally during the first half of 2022, the year-to-date total still exceeds that of the full years of 2017, 2018 and 2019, while Europe saw attacks surge over this period.

The cyber risk landscape doesn’t allow for any resting on laurels. Ransomware and phishing scams are as active as ever and on top of that there is the prospect of a hybrid cyber war,” says Scott Sayce, Global Head of Cyber at AGCS and Group Head of the Cyber Centre of Competence. “

“Most companies will not be able to evade a cyber threat. However, it is clear that organizations with good cyber maturity are better equipped to deal with incidents. Even when they are attacked, losses are typically less severe due to established identification and response mechanisms.

“Although we see good progress, our experience also shows that many companies still need to strengthen their cyber controls, particularly around IT security trainings, better network segmentation for critical environments and cyber incident response plans and security governance.

“As a cyber insurer we are willing to go beyond pure risk transfer, helping clients to adapt to a changing risk landscape and raising their protection levels.”

At same time, the war in Ukraine and wider geopolitical tensions are a major concern as hostilities could spill over into cyber space and cause targeted attacks against companies, infrastructure or supply chains,

The insurer’s annual review of the cyber risk landscape also highlights the emerging threats posed by the growing reliance on cloud services, an evolving third-party liability landscape that means higher compensation and penalties, as well as the impact of a shortage of cyber security professionals.

Such potential vulnerabilities mean that today a company’s cyber security resilience is scrutinized by more parties than ever before, including global investors, meaning many firms now rank it as their major environmental, social, and governance (ESG) risk concern, the report notes.

Double and triple extortion now the norm

“The cost of ransomware attacks has increased as criminals have targeted larger companies, critical infrastructure and supply chains.  Criminals have honed their tactics to extort more money,” Sayce explains. “Double and triple extortion attacks are now the norm – besides the encryption of systems, sensitive data is increasingly stolen and used as a leverage for extortion demands to business partners, suppliers or customers.” Ransomware severity is likely to remain a key threat for businesses, fueled by the growing sophistication of gangs and rising inflation, which is reflected in the increased cost of IT and cyber security specialists.

Increasingly, smaller and mid-sized  companies which often lack controls and resources to invest in cyber security are being targeted by gangs as larger businesses invest more heavily in security. Gangs are also using a wide range of harrassment techniques, are tailoring their ransom demands to specific companies and are using expert negotiators to maximize returns.

Sophisticated scams

Business email compromise (BEC) attacks continue to rise, facilitated by growing digitalization and availability of data, the shift to remote working and, increasingly, ‘deep fake’ technology and virtual conferencing. BEC scams totalled $43bn globally from 2016 to 2021 according to the FBI with a 65% spike in scams between July 2019 and December 2021 alone.

Attacks are becoming more sophisticated and targeted with criminals now using virtual meeting platforms to trick employees to transfer funds or share sensitive information. Increasingly, these attacks are enabled by artificial intelligence enabling ‘deep fake ‘audio or videos that mimic senior executives. Last year, a bank employee from the United Arab Emirates made a $35mn transfer after being misled by the cloned voice of a company director

The threat of cyber war

The war in Ukraine and wider geopolitical tensions are a major factor reshaping the cyber threat landscape as it increases the risk of espionage, sabotage and destructive cyber-attacks against companies with ties to Russia and Ukraine, as well as allies and those in neighboring countries. State-sponsored cyber acts could potentially target critical infrastructure, supply chains or corporations.

“As yet the war between Russia and Ukraine has not led to a notable uptick in cyber insurance claims, however it does point to a potentially increased risk from nation-states,” Sayce explains. Although acts of war are typically excluded from traditional insurance products, the risk of a hybrid cyber war has accelerated efforts in the insurance market to address the issue of war and state-sponsored cyber attacks in wordings and provide clarity of cover for customers.

Hackers zero in on vulnerable supply chains: Supply chain attacks – whether on critical infrastructure such as the Colonial Pipeline or on cloud services  – have emerged as a significant risk. Increasingly, ransomware gangs use the threat of disruption to pressure firms into paying ransoms, with manufacturing companies particularly vulnerable.

Cloud outsourcing: Companies continue to shift their services and data storage on to the cloud, despite growing concerns around security and risk aggregation. By relying on a small number of providers for cloud services or cyber security, society is creating large concentrations around a few single points of failure. It is a common misconception that the outsourcing or cloud vendor will assume full responsibility in the event of an incident.

Third-party liability, including fines and penalties, is becoming more relevant with advances in technology, organizations collecting more information and enforced data privacy regulation. Almost any cyber incident – including double-extortion ransomware –   can lead to litigation and demands for compensation from affected parties.

A shortage of professionals is hindering efforts to improve cyber security. While there is growing awareness among boards, the number of unfilled cyber security jobs worldwide has grown 350% over the past eight years to 3.5 million estimates show, meaning many companies struggle to hire, impacting their ability to improve their cyber security posture.

Cyber security increasingly seen through the ESG lens. Today, companies’ cyber security resilience is scrutinized by far more stakeholder groups than in the past. Increasingly, cyber security considerations are incorporated into the ESG risk-analysis frameworks of data providers, who look into companies’ practices to evaluate their preparedness for cyber crime. Making sure a company’s cyber processes and policies are understood at the board level and that risk monitoring processes are in place has never been more important.

In response to a more complex risk environment and increasing cyber claims activity, the insurance industry is more diligently assessing companies’ cyber risk profiles in a bid to incentivize companies to improve their security and risk management controls.

“The good news is that we are now seeing a very different conversation on the quality of cyber risk than a few years ago,” says Sayce. “We are gaining much better insights and appreciate clients going the extra mile in order to provide comprehensive data to us. This also helps us to provide more value and offer useful information and advice to customers, such as which controls are most effective or where to further improve risk management and response approaches.

The net result should be fewer – or less significant – cyber events for our customers and fewer claims for us. Such collaboration will also help in creating a long-term sustainable cyber insurance market which not only relies on traditional coverages but, increasingly, on integrating cyber risks into captive programs and other alternative risk transfer concepts.”

Sunak re-appoints Nigeria’s Kemi Badenoch into new cabinet

By Favour Nnabugwu

 

 

UK’s Prime Minister, Rishi Sunak has re-appointed British-Nigerian, Kemi Badenoch as International Trade Secretary.

Badenoch rose to prominence during this summer’s leadership contest.

Rishi Sunak has also appointed her as women and equalities minister – a post she held previously during Boris Johnson’s premiership.

Badenoch, MP for Saffron Walden, came fourth in the Tory leadership contest this summer.

She has been outspoken on issues such as gender-neutral toilets – which she opposes – and stood on an “anti-woke” platform in the Tory contest.

She also argued that the state needed to be slimmed down.

The former software engineer worked in banking and later as a director of the Spectator magazine before being elected to the London Assembly.

She entered the Commons as MP for Saffron Walden in 2017, and lists her interests as including engineering and technology, social mobility and integration.

Access Corporation to acquire equity stake in Sigma Pensions Ltd

By Favour Nnabugwu

Access Holdings Plc, trading as Access Corporation ha been granted approval by the National Pension Commission (PenCom) and the Federal Competition and Consumer Protection Commission (FCCPC) to First Guarantee Pension Limited (FGPL) and First Ally Asset Management Limited (First Ally)of Sigma Pensions Ltd

FGPL and First Ally to acquire the entire issued shares of Actis Golf Nigeria Limited (AGNL) being the sole shareholder of Sigma by extension Sigma Pensions Limited (Sigma). 

The Corporation had recently announced its acquisition of majority equity stake in FGPL. It is intended, subject to the receipt of relevant regulatory approvals that the operations of FGPL and Sigma will be merged to create Nigeria’s fourth largest Pension Fund Administrator (PFA) by Assets Under Management.

Commenting on this landmark transaction, Group Chief Executive, Access Corporation,. Dr. Herbert Wigwe said, “Having concluded our divestment from the pension funds custody sector and our recent acquisition of FGPL, we are pleased with the progress we are making regarding our diversification and growth into the pension funds administration sector. We are particularly pleased to have reached this agreement with Actis. Our plan is to consolidate these entities to create a formidable pension funds administration business”

Wigwe further stated, “The  proposed consolidation will leverage the Corporation’s expansive distribution network, strong risk management culture and best-in-class governance standards to provide contributors with sustainable world class pension funds administration services.”

Speaking on the transaction, Natalie Kolbe Non-Executive Director of Actis, Mr. Natalie Kolbe noted, “Sigma has transformed during our partnership, and we are delighted that Access, a well-respected operator, is set to support the company across its next phase of growth. The market Sigma operates in is ripe for consolidation and I have no doubt that with such a capable backer, they will go from strength to strength.”

The Corporation promised to update the market in accordance with its disclosure obligations.

 

Nigerian woman breaks record, bags PhD at 25 years

By Favour Nnabugwu

 

 

Priscilla Asikhia, a young and talented Nigerian woman from Edo State and the daughter of popular gospel film makers, Lekan and Busayo Asikhia’s named Priscilla has bagged Doctoral Degree, set a remarkable record when she graduated with a Doctor of Philosophy (PhD) from Babcock University in South-West, Nigeria, at the age of 25.
Priscilla Asikhia shared her success on her LinkedIn profile, recounting the ten years of arduous study that it took her to earn a PhD.

She stated on LinkedIn that her “successive 10-year education has given me a grounded knowledge of Educational Research, Administration, and Human Resources.”

Priscilla began her higher education at the age of 15, and by the age of 19, she earned a Bachelor’s degree in Business Administration.

At the age of 22, she graduated from her Master’s program in business administration and management.

Priscilla started her PhD studies in the same semester that she finished her master’s degree in human resources and personnel administration.

She successfully finished her PhD at age 25, making her the institution’s youngest PhD graduate and one of Nigeria’s youngest Doctors of Philosophy.

“I am happy to say that I have just received a Ph.D. degree, making me Babcock University’s youngest Ph.D. graduate. The achievement belongs entirely to God, she said.

Priscilla started her PhD studies in the same semester that she finished her master’s degree in human resources and personnel administration.

She successfully finished her PhD at age 25, making her the institution’s youngest PhD graduate and one of Nigeria’s youngest Doctors of Philosophy.

“I am happy to say that I have just received a Ph.D. degree, making me Babcock University’s youngest Ph.D. graduate. The achievement belongs entirely to God, she said.

Priscilla began her higher education at the age of 15, and by the age of 19, she earned a Bachelor’s degree in Business Administration.

At the age of 22, she graduated from her Master’s program in business administration and management.

Priscilla started her PhD studies in the same semester that she finished her master’s degree in human resources and personnel administration.

She successfully finished her PhD at age 25, making her the institution’s youngest PhD graduate and one of Nigeria’s youngest Doctors of Philosophy.

“I am happy to say that I have just received a Ph.D. degree, making me Babcock University’s youngest Ph.D. graduate. The achievement belongs entirely to God, she said.

 

Naicom symphasises with flood victims, assures insured victims of claim payment

By Favour Nnabugwu

 

 

The National Insurance Commission (NAICOM) has expressed the commission’s sympathy with victims of recent flood disaster across the country.

Naicom assured all victims with insurance against such misfortunes of prompt claims payment from the companies

The Head of Corporate Communications and Market Development, NAICOM,
AbdulRasaaq Salami, revealed this in a statement to journalists today

With this level of disaster, insurance companies are in for large claims settlement to policyholders that are affected by the flood ravaging parts of the country.

2.5 million persons are affected by current floods which hit Nigeria when Cameroonian authorities released water from their Lagdo Dam.

Of this figure, 1.3 million people are displaced, 2,407 persons were injured, and 603 persons lost their lives.

These figures were released on Sunday in Abuja by the the Minister of Humanitarian Affairs, Disaster Management and Social Development, Hajiya Sadiya Umar Farouq, while unveiling Nigeria’s preparation to meet with the Government of Republic of Cameroon over the release of water from Lagdo Dam at a press conference.

Farouq also tasked state governments to put more efforts on the evacuation of flood victims to higher grounds.

She said about 121,318 houses were partially damaged, 82,053 houses were totally damaged, 108,392 hectares of farmlands were partially damaged and 332,327 hectares of farmlands were totally damaged.

While we mourn the unfortunate boat mishap in Anambra and other locations, please, we must note that we are not completely out of the woods,” Farouq said

She says that the Meteorological Agencies are warning that States like Anambra, Delta, Cross River, Rivers and Bayelsa are still at the risk of experiencing floods up till end of November.

“So, we are calling on the respective State Governments, LGAs and Communities to prepare by evacuating people living on flood plains to high grounds, providing tents and relief materials, fresh water as well as medical supply for possible outbreak of water borne disease”.

Farouq recalled that on Feb. 15, the Nigerian Meteorological Agency (NiMet) released the 2022 Seasonal Climate Prediction informing Nigerians that the rains of 2022 will be heavier and longer.

She also states that on May 12, the Nigeria Hydrological Services Agency released the Annual Flood Outlook.

According to her, “immediately after these two releases, the National Emergency Management Agency (NEMA) was all out in the media and went to all States and FCT.

NEMA warned of expected floods and advised on mitigating and preparedness actions needed to take to minimize losses and damages.

“I also briefed the National Economic Council on Sep.22, where I outlined preparedness strategies that all State Governments should take to mitigate the 2022 floods.

However, we must initiate a bilateral discussion with authorities in Cameroon in November on the periodic opening of the Lagdo dam.

“The delegation to Cameroon is to be led by the Permanent Secretary of the Ministry, and the Ministry of Foreign Affairs will be requested to facilitate the meeting,” Farouq said.

Farouq said there was enough warning and information about the 2022 flood but States, Local Governments and Communities appeared not to take heed.

“There is the need for State Governments to invest in flood management and lead on community base flood early warning systems; hence we called on State Governments to take greater responsibilities for flood preparedness and response.

“We are calling on the respective State Governments, LGAs and Communities to prepare by evacuating people living on flood plains to high grounds, providing tents and relief materials, fresh water as well as medical supply for possible outbreak of water borne disease”.

U-17 World Cup: Nigeria beat USA to reach first-ever semifinal

By Favour Nnabugwu

 

 

Nigeria’s Under-17, U-17 women’s team, the Flamingos, defeated USA 4-3 on penalties to reach the semi final on the ongoing FIFA U-17 world cup in India.

The game ended 1-1 in regulation time and went straight to penalties.

Mamuso, who scored the winning penalty for Nigeria, opened the scoring from the penalty spot in the 26th minute. A VAR review had confirmed a foul on Amina Bello with the referee wasting no time in pointing to the spot.

The Americans piled pressure on the Nigerians and were rewarded just before half-time. They equalised in the 40th minute through Amalia Martina Villarreal’s strike.

The second half saw a tight contest between both sides as they played hard to get a lead but to no avail.

Nigeria produced a brilliant defensive display to take the game to penalties.

Flamingos will now play the winner of the game between Colombia and Tanzania on Wednesday, October 26, 2022.

U-17 World Cup: Nigeria beat USA to reach first-ever semifinal

NEPZA spits fire on contractors willful projects’ delays

By Favour Nnabugwu
The Nigeria Export Processing Zones Authority (NEPZA) has warned against willfully prolong execution of assigned projects with the hope of triggering `variation clause’.
Prof. Adesoji Adesugba, Managing Director of the Authority, dropped the hint in Abuja said the the Authority will not hesitate call up contract bonds from contracted companies that delay projects
Adesugba while receiving Report of the NEPZA 2017-2021 Capital Projects from the Joint Capital Projects Monitoring Committee made up of members from the Authority and the Ministry of Industry, Trade and Investment, mafe clear to contractors.
In a statement released by Head, Corporate Communications, NEPZA, Martins Odeh, the NEPZA boss said that he had insisted in the transparent conducts of contracts bidding processes since assuming leadership of the agency in 2020, adding that the management would not hesitate in sounding out erring contractors.
“I have for these past years stood on my resolve to ensure transparency and due process and probity in the manner in which all contracts are handled here”
“We shall, therefore, not waste time in retrieving contract bonds from contracted companies that needlessly breach agreed terms. We have to insist that the Federal Government obtains quality service from the huge spending it is making to improve the infrastructure of the country’s Free Trade Zone,’’ the NEPZA boss said.
He, therefore expressed delight on the supervision tours embarked by the committee, adding that the Report had brought out all the gray areas that required urgent handling.
Adesugba explained that the Report would serve as an evaluation guide, adding that it was also opened to the public and all relevant institutions of government to study.
The NEPZA chief executive officer also said that the Report would be updated in February 2023 after a follow-up assessment of the remaining ongoing projects would be been conducted.
Recall that the committee rounded-off scheduled inspections of 112 approved projects for the Authority in September.
These projects, came under the NEPZA Tender Board of 2017-2021, direct Federal Executive Council approval and the Ministerial Tender Board of Capital Projects respectively.
Out of these 112 projects, a total of 76 have been completed with the CFTZ accounting for 28; KFTZ 38; Lekki SEZ 5; and Ilorin SEZ 5 while others are at different levels of completion.
Global Center on Adaptation, Invesco collaborate on climate adaptation

By Favour Nnabugwu

 

 

The Global Center on Adaptation (GCA) signs its first cooperation agreement with the EMEA division of Invesco focused on an investment strategy in the climate adaptation space.

The agreement, expected to become fully operational at COP27, is specifically targeted at exploring a blended finance strategy that aims to increase adaptation investment in developing markets.

The MoU was signed at the margins of the ongoing Finance in Commons Summit organised by the African Development Bank and the European Investment Bank in Abidjan, Cote d’Ivoire.Invesco is an independent investment management firm that offers a wide range of single-country, regional and global capabilities across primary equity, fixed income, and alternative asset classes, delivered through a diverse set of investment vehicles.

Invesco is a signatory to the Task Force on Climate-related Financial Disclosure (TCFD), the Principles for Responsible Investment (PRI), Climate Action 100+ and CDP2 (score B in 2020); and has adopted the Network for Greening the Financial System’s (NGFS) scenarios to assess physical and transition risks across a broader range of asset classes.

GCA is an international organization that aims to accelerate action and support for adaptation solutions in partnership with the public and private sector.Speaking during the signing ceremony, Professor Patrick Verkooijen, CEO of the Global Center on Adaptation said: “Private sector investments currently make up less than 2% of climate adaptation spending. We hope through working closely with our partners at Invesco we will be able to unlock and mobilize more private capital to prepare for and respond to the physical impacts of climate change.

”Matthieu Grosclaude Chief Operating Officer EMEA at Invesco commented:“We are very pleased to be partnering with the GCA on this important initiative to accelerate climate adaptation finance. It aligns strongly with our strong investment capabilities in emerging markets and our continued focus on clients’ partnerships. We very much look forward to working together to build a climate resilient future.

Nigeria has potentials to generate $600m from agriculture insurance premium

By Favour Nnabugwu
Nigeria has the potential to generate nothing less than USD 600 million of agriculture insurance premium in a year
Deputy Managing Director/COO, Africa Reinsurance Corporation, Ken Aghoghovbia of Africa Reinsurance Corporation (Africa Re) at the opening Africa Re Agriculture Insurance Workshop in Lagos, said owing to the vax farming in the country against the USD 10 million reported during the year 2021.
He noted that there is a gap of $590 million untapped insurance potentials in the country.
Aghoghobvia stated that these bright economic prospects, provide huge opportunities for insurance companies to innovate and provide risk transfer solutions to cover the inherent risks associated with farming activities.
He stressed that agriculture remains a key contributor to Nigeria’s Gross Domestic Product (GDP) and like in many emerging economies, accounts for 30 per cent of the country’s total economic output; providing employment to at least 35 per cent of its over 200 million population.
He submitted that with sustained pressure on food security, arising from the increasing population and the government’s push to diversify the economy, agriculture will continue to be a key area of focus in many years to come, adding that sadly, this undertaking is undermined by the limited investments in the sector, and the uncertainties resulting from the effects of climate change.
Aghoghovbia maintained that since 2017, the agriculture class of business has generated a lot of interest from several market players and currently, at least 16 insurance companies have received NAICOM’s approval to underwrite the business, thus complementing the efforts of the Nigeria Agriculture Insurance Company (NAIC).
He stated that the prominence of small holder farmers in Nigeria’s food production systems dictates that partners explore new approaches to providing effective and affordable insurance products.
“In line with our mission to support the development of African economies including that of our beloved country Nigeria, Africa Re recognizes the significance of the agriculture sector in fulfilling the aspirations of many farming households.
“Therefore, our team endeavors to work with like minded partners, like yourselves, to make the agriculture class of insurance business a significant contributor to the ambition of increasing insurance penetration in Nigeria and indeed the entire region,” he stated.
He posited that at Africa Re, they are deliberate about leveraging their wide range of expertise and knowledge, backed by solid financial strength, to provide the much needed reinsurance capacity in the agriculture sector, stating that over the last five years, the market has seen exponential growth in insurance premiums from agriculture, but this growth has been overshadowed by the unfavorable loss experience.
“This poor performance reveals the need for the market to invest more in stakeholder engagement including training, aimed at improving underwriting skills as well as claims handling capabilities,” he said.
He said agriculture insurance is still in its formative years in the country, hence the workshop which is aimed at providing a platform for candid conversations with a view to developing homegrown solutions to move the agriculture sector in Nigeria to the next level
The Africa Re. DMD, noted that whereas a lot of work has already been done in addressing some of these challenges, Africa Re recognizes the need for continuous improvement especially during this ever-changing business environment and hopes that the workshop will help to move all stakeholders towards the desired.