All Posts in "Day: November 24, 2022"

Nigeria’s GDP growth slows to 2.25% in Q3’ 22 – NBS

By Favour Nnabugwu

 

 

Nigeria’s Gross Domestic Product, GDP, dropped by 1.78 percent to 2.25 percent in the third quarter of 2022 (Q3’22) from 3.54 percent in recorded Q2’22.

The National Bureau of Statistics, NBS, made this known in its Nigerian GDP report for Q3’22

NBS cited the base effects of the recession and the challenging economic conditions that have impeded productive activities as cause for the reduction in growth.

According to NBS, “Real growth of the oil sector also fell by 10.91 basis points to -22.67 percent QoQ in Q3’22 from -11.77 percent in Q2’22”

This trend reflected in the sector’s contribution to GDP which fell by 0.67 percentage point to 5.66 percent in Q3’22 from 6.33 percent in Q2’22.

Similarly, growth in the oil sector decreased by 0.50 percentage points to 4.27 percent from 3.7 percent in Q3’22.

NBS said: “Nigeria’s GDP grew by 2.25 percent (year-on-year) in real terms in the third quarter of 2022. This growth rate declined from 4.03 percent in the third quarter of 2021.

“The reduction in growth is attributable to the base effects of the recession and the challenging economic conditions that have impeded productive activities

The Q3’22 growth rate decreased by 1.78 percent points from the 4.03 percent growth rate recorded in Q3’21 and decreased by 1.29 percent points relative to 3.54 percent in Q2’22.

However, QoQ, real GDP grew at 9.68 percent in Q3’22, reflecting a higher economic activity in Q3’22 than the preceding quarter.

“For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors.

“The nation in the third quarter of 2022 recorded an average daily oil production of 1.20 million barrels per day (mbpd), lower than the daily average production of 1.57mbpd recorded in the same quarter of 2021 by 0.37mbpd and lower than the second quarter of 2022 production volume of 1.43 mbpd by 0.24mbpd. (Figure 2).

“The real growth of the oil sector was –22.67 percent (year-on-year) in Q3 2022 indicating a decrease of 11.94 percent points relative to the rate recorded in the corresponding quarter of 2021. Growth also decreased by 10.91 percent points when compared to Q2’22 which was –11.77 percent. Quarter-on-Quarter, the oil sector recorded a growth rate of -1.80 percent in Q3 2022.

The Oil sector contributed 5.66% to the total real GDP in Q3 2022, down from the figures recorded in the corresponding period of 2021 and the preceding quarter, where it contributed 7.49 percent and 6.33 percent respectively.

“The non-oil sector grew by 4.27 percent in real terms during the reference quarter (Q3’22). This rate was lower by 1.18 percent points compared to the rate recorded in the same quarter of 2021 and 0.50 percent points lower than the second quarter of 2022.

“This sector was driven in Q3’22 mainly by Information and Communication (Telecommunication); Trade; Transportation (Road Transport); Financial and Insurance (Financial Institutions); Agriculture (Crop Production) and Real Estate, accounting for positive GDP growth.

In real terms, the non-Oil sector contributed 94.34 percent to the nation’s GDP in the third quarter of 2022, higher than the share recorded in the third quarter of 2021 which was 92.51 percent and higher than Q2’22 recorded as 93.67 percent.”

Patoma Admin by — November 24, 2022 in Banking & Finance 0
NCRIB broadens horizon, members inducted into TATIC

CAPTION:

L – Vice President of Turkiye African Trade and Investment Council (TATIC), Mr. Abiodun Odukoya; President of TATIC, Mohammed Ali Cankatar; President of The Nigerian Council of Registered Insurance Brokers (NCRIB), Mr. Rotimi Edu, President of Insurance Association of Turkiye, Atilla Benli; Past President NCRIB, Dr. (Mrs.) Bola Onigbogi at the induction of NCRIB delegation as members of TACTIC in Istanbul, Turkiye, recently

 

 

By Favour Nnabugwu

 

 

Members of the Nigerian Council of Registered Insurance Brokers (NCRIB) have been inducted into the Turkiye & Africa Trade and Investment Council (TATIC) in instanbul, Turkey

The Chairman of the Council, Muhammed Ali Cankatar noted that TATIC is a professional organization that promotes trade relations and investments between Turkiye and countries of the African continent,

Cankatar noted that it is the world’s fastest growing business network, from which the NCRIB would extract significant value for its members.

He noted that the admission of the Council’s delegates as pioneer, members in Nigeria would give the inductees the required leverage to take advantage of the fast growing Turkish Trade and Investment market.
Cankatar opined that “Africa is becoming an actor that plays significant roles in the international system and that the shared historical experience of Turkiye and the continent, has made the need for strategic partnership between TATIC and viable professional institutions and groups like the NCRIB a compelling necessity.
Speaking at the induction and business parley between the delegation of the NCRIB, led by the Council’s President, Mr. Rotimi Edu, and select members of TATIC, said insurance broking, being a global profession must continually see beyond local confines, to fully maximize the potentials of operators through profitable synergies, for their required technical and professional skills.
Edu promised to give the required footing to TATIC in Nigeria by rallying more of its members to join the group, as well as facilitate the required collaboration between it and other progressive trade associations in the country.
In a goodwill virtual message at the event, the Commissioner of Insurance, Mr. Sunday Thomas applauded the NCRIB under the leadership of Mr Rotimi Edu for introducing international dimensions to the desire of the Commission to accelerate insurance growth and penetration in Nigerian and abroad.
In the course of the trip, the delegation of NCRIB also visited the Insurance Association of Turkiye, an umbrella body for Insurance, Reinsurance and Pension companies in Turkiye where they were received by the Association’s President, Atilla Benli.
Benli noted that the insurance market in Turkiye has some similarities with that of Nigeria with motor insurance being the highest insurance policy purchased. He stated that the Covid 19 pandemic eventuated a surge on life insurance policies and that retail business was also looking northwards.
Patoma Admin by — November 24, 2022 in Insurance 0
NAICOM tasks operators on insuring all levels of risks as world population peaks @ 8bn 

By Favour Nnabugwu
 
The National Insurance Commission (NAICOM) says  insurance companies in Nigeria have a lot to gain from the increase in world’s population now peaking at 8 billion .
“The world we live in is full of uncertainties and risks. Individuals, families, businesses, properties and assets are exposed to different types and levels of risks and all will be insured if insurers truly get it right, ” said NAICOM’s Deputy Director, Communication and Market Development, Mr. AbdulRasaaq Salami.
Fielding questions from patomabusinessonline.com ,  on what opportunities the increase in world’s population holds for the local insurance players,  he said that
the insurance sector has a lot to gain from it especially, the life insurance companies.
His words : ” The increase in population is a blessing to the insurance industry;  it’s a huge potential to enable insurance growth but the players particularly, life operators must be ready to take advantage and harness the enormous benefits.”
He said that it’s expected that a serious operator desirous of taking advantage of the increasing population would study and analyse the population to identify the demographics.
 He added, “Having done this, you will now be able to determine which of the segments suits your company and then channel your energy accordingly.”
Salami acknowledged that there are products in the market that best suit variety of the population yet beyond having the products, he noted that the operators still need to get closer to the customers.
“several life insurance products including annuity, are currently available in the Nigerian market for consumers. As good as these products look, I think the industry should go beyond this and perhaps get personal with consumers to understand their specific need, ” he said.
He added that apart from protecting individuals and businesses from many kinds of potential risks, the Insurance sector contributes significantly to the general economic growth of the nation by providing stability to the functioning of businesses and
and generating long-term financial resources for the industrial projects.
“Understanding  and identifying the specific needs of the prospective consumers would mean developing specific products tailored towards meeting the identified needs.
“This approach makes marketing of the products easier and thus, guarantees higher patronage which in the long run will impact the growth of not just individual companies but the entire industry.”
Meanwhile, the UN reported that globally, the population increased from 1billion in 1804 to 2 billion in 1927; increase to 3 billion in 1959, to 4 billion in 1974 to 5 billion in 1987 increase further to 6 billion in 1998 to 7 billion in 2011 and has now reached 8billion on November 15, 2022.
The world population is expected to move to 8.5billion in 2030, 9.7billon in 2050 and 10.4billion in 2100.
Of the world population, China has the world’s largest population (1.426 billion), but India (1.417 billion) is expected to claim this title next year. The next five most populous nations:- the United States, 332,073,000; Indonesia, 274,312,000; Pakistan, 232,665,000; Nigeria, 213,560,000 and Brazil, 214,421,000 together have fewer people than India or China.
These include risk of losses of life, health, assets, property, etc. While it is not always possible to prevent unwanted events from occurring, financial world has developed products that protect individuals and businesses against such losses by compensating them with financial resources. Insurance is a financial product that reduces or eliminates the cost of loss or effect of loss caused by different types of risks.
Globally, life expectancy reached 72.8 years in 2019, up almost nine years since 1990. Further reductions in mortality are projected to result in an average longevity of around 77.2 years globally in 2050. In 2020, the global population growth rate fell under 1% per year for the first time since 1950.
Life expectancy at birth for women in 2019 exceeded that for men by 5.4 years globally, with female and male life expectancies of 73.8 and 68.4, respectively. “A female survival advantage is observed in all regions and countries, ranging from 7 years in Latin America and the Caribbean to 2.9 years in Australia and New Zealand,” notes the UN report.
Patoma Admin by — November 24, 2022 in Insurance 0
PenCom’s focus is to drive MPP – Dahir-Umar tells CSGs

By Favour Nnabugwu
National Pension Commission, PenCom, has said the one of main focus of the Commission is the strategic efforts to drive the Micro Pension Plan (MPP) as PenCom sensitise Civil Society Groups, CSGs, on Micro-Pension Plan, MPP.

The conference which the second in the series to theme: ‘Enhancing Informal Sector Participation in the Contributory Pension Scheme’ held in Abuja, said the Roles of Civil Society Groups’ is meant to bridge the gap between PenCom and the public.

The Director-General of PenCom, Mrs Aishat Dahir-Umar in her paper delivered at the conference said the conference provides a great opportunity for the Commission to enlighten and interact with relevant Civil Society Groups in order to elicit better understanding of the Contributory Pension Scheme (CPS) and the Commission’s activities in general.
Dahir-Umar said that the need to constantly interact and inform you of recent developments in the pension industry and some of the other laudable transformational initiatives by the Commission.
The Commission, she said is facilitating efforts by the Pension Fund Administrators to provide incentives for the MPP. One key incentive that is being worked upon is the provision of health insurance to the Micro Pension contributors.
“This recognizes the need for the MPP to provide more access to health care services, which is often lacking in critical times of need”.
She told the participants that the  Micro Pension Plan (MPP) was conceptualized to expand pension coverage to the informal sector, including small-scale businesses, entertainers, professionals, petty traders, artisans, and entrepreneurs.

“The MPP aims to curb old-age poverty by assisting the participants to contribute while working and build long-term savings to fall back on when they are no longer in active working life”.

PenCom’s expectation, according to the DG, is learning points from the conference which would be disseminated to your target audience and the larger society, “in addition to creating awareness and deepening the understanding of members of the CSGs, the conference should also elicit their participation in the MPP”.
Dahir-Umar recounted the feats achieved by the Commission, “Some of the recent significant accomplishments by the Commission include the issuance of the Guidelines on Accessing 25 percent (%) of RSA Balance towards payment of Equity Contribution for Residential Mortgage by RSA holders.
“This innovative development provides equity finance for RSA holders, facilitates their ownership of residential homes during their working life, and ultimately improves their living standards”
“The  Guideline effectively implements the provisions of Section 89(2) of the Pension Reform Act (PRA), 2014 which aligns with one of the Commission’s core value of responsiveness, based on the need to improve the standard of living of active employees and retirees under the CPS”
“In  addition to the above stated, the Commission also concluded the increase of the Minimum Regulatory Capital (Shareholders’ Fund) requirements of PFAs from N1 billion to N5 billion”
The recapitalisation exercise, which spanned a 12-month period was concluded on 27 April 2022. As of the deadline, all PFAs had complied with the Commission’s directive to increase the Minimum Regulatory Capital (Shareholders’ Fund) from N1 billion to N5 billion.
“The recapitalisation exercise was to ramp up the capacity of the PFAs to manage the increasing number of registered contributors and pension fund assets, the value of which I am pleased to inform you stands at about N14.42 Trillion as at 30 September, 2022”.
She continued, “The exercise is expected to bring about increased effectiveness and efficiency as well as improved service delivery in the industry.
“Further to its regulatory and supervisory functions, the Commission has continued to issue new Guidelines, Frameworks, and Regulations while strengthening existing ones, to make for the smooth implementation of the CPS and the welfare of active employees and pensioners under the Scheme”
“The  Commission issued the Revised Regulation on the Administration of Retirement and Terminal Benefits to ensure that pensioners receive their benefits promptly”
The DG went on to relay other achievements by PenCom, “The key highlights of the Revised Regulation include clarifications and simplification of documentation processes, RSA consolidation before payments of retirement benefits, accrued pension benefits for private sector contributors, and additional lump sum payments”
 The Revised Regulation also contains several new provisions on Pension Enhancement, Voluntary Contributions, payment under the MPP, payment of benefits of missing persons, and payment of Nigeria Social Insurance Trust Fund (NSITF) benefits.
Patoma Admin by — November 24, 2022 in Pension 0
PenCom DG, Aishat Dahir-Umar speech at Sensitization of Civil Society Group on Micro-Pension Plan

WELCOME REMARKS BY AISHA DAHIR-UMAR, DIRECTOR GENERAL, NATIONAL PENSION COMMISSION, AT THE SENSITIZATION CONFERENCE FOR CIVIL SOCIETY GROUPS ORGANIZED BY THE COMMISSION ON 24 NOVEMBER, 2022 AT ROCKVIEW HOTEL ROYALE, PLOTS 194/196, CADASTRAL ZONE A8, ADETOKUNBO ADEMOLA CRESCENT, WUSE II, ABUJA

  Protocols

Distinguished Ladies and GentlemenI am highly delighted to welcome you all to this sensitization Conference for Civil Society groups. The theme of this year’s conference is ‘Enhancing Informal Sector Participation in the Contributory Pension Scheme: The Roles of Civil Society Groups’.

This conference provides a great opportunity for the Commission to enlighten and interact with relevant Civil Society Groups in order to elicit better understanding of the Contributory Pension Scheme (CPS) and the Commission’s activities in general. Distinguished participants, this Conference, which is the second in the series, has become quite imperative due to your critical roles as the bridge between government agencies and the public, thus, the need to constantly interact and inform you of recent developments in the pension industry and some of the other laudable transformational initiatives by the Commission.

The Micro Pension Plan (MPP) was conceptualized to expand pension coverage to the informal sector, including small-scale businesses, entertainers, professionals, petty traders, artisans, and entrepreneurs.  I am pleased to inform you that members of the Civil Society Groups are also welcome to participate and save for their old age. The MPP aims to curb old-age poverty by assisting the participants to contribute while working and build long-term savings to fall back on when they are no longer in active working life.

 Given the peculiarities of the target participants, the Commission is facilitating efforts by the Pension Fund Administrators to provide incentives for the MPP. One key incentive that is being worked upon is the provision of health insurance to the Micro Pension contributors. This recognizes the need for the MPP to provide more access to health care services, which is often lacking in critical times of need.The Strategic efforts to drive the Micro Pension Plan (MPP) remains one of the important areas of focus of the Commission.

 Therefore, it is the Commission’s expectation that the learning points from this conference would be disseminated to your target audience and the larger society, in addition to creating awareness and deepening the understanding of members of the CSGs, the conference should also elicit their participation in the MPP. Distinguished participants, the current Commission’s leadership is focused on transforming the pension sector.  Some of the recent significant accomplishments by the Commission include the issuance of the Guidelines on Accessing 25 percent (%) of RSA Balance towards payment of Equity Contribution for Residential Mortgage by RSA holders.

This innovative development provides equity finance for RSA holders, facilitates their ownership of residential homes during their working life, and ultimately improves their living standards. The Guideline effectively implements the provisions of Section 89(2) of the Pension Reform Act (PRA), 2014 which aligns with one of the Commission’s core value of responsiveness, based on the need to improve the standard of living of active employees and retirees under the CPS.In addition to the above stated, the Commission also concluded the increase of the Minimum Regulatory Capital (Shareholders’ Fund) requirements of PFAs from N1 billion to N5 billion.
The recapitalisation exercise, which spanned a 12-month period was concluded on 27 April 2022. As of the deadline, all PFAs had complied with the Commission’s directive to increase the Minimum Regulatory Capital (Shareholders’ Fund) from N1 billion to N5 billion. The recapitalisation exercise was to ramp up the capacity of the PFAs to manage the increasing number of registered contributors and pension fund assets, the value of which I am pleased to inform you stands at about N14.42 Trillion as at 30 September, 2022.
The exercise is expected to bring about increased effectiveness and efficiency as well as improved service delivery in the industry. Further to its regulatory and supervisory functions, the Commission has continued to issue new Guidelines, Frameworks, and Regulations while strengthening existing ones, to make for the smooth implementation of the CPS and the welfare of active employees and pensioners under the Scheme.
The Commission issued the Revised Regulation on the Administration of Retirement and Terminal Benefits to ensure that pensioners receive their benefits promptly.The key highlights of the Revised Regulation include clarifications and simplification of documentation processes, RSA consolidation before payments of retirement benefits, accrued pension benefits for private sector contributors, and additional lump sum payments.
 The Revised Regulation also contains several new provisions on Pension Enhancement, Voluntary Contributions, payment under the MPP, payment of benefits of missing persons, and payment of Nigeria Social Insurance Trust Fund (NSITF) benefits.  Furthermore, it introduced Administrative Sanctions on PFAs who disregard the provisions of the Regulation. The sanctions are to ensure that PFAs promptly process the payment of retirement benefits to retirees. Distinguished participants, the conference was carefully designed to reflect the stated theme.
The first paper to be presented is titled “The Micro Pension Plan: panacea for Old Age Poverty in the informal Sector”. This paper provides a synopsis of the MPP, and its objectives. The second presentation is titled” How Micro Pension Funds are Invested for the Benefit of the Contributors” and;The third paper is titled” The Administration of Retirement Benefits under the MPP”. I therefore, implore all participants to maximise the benefits of these presentations towards greater understanding of the Micro Pension Plan.
Finally, I wish to express the Commission’s immense gratitude to you all, for taking time off your busy schedules to participate in this conference.  I encourage you to make this conference as interactive as possible by seeking clarifications where necessary. I wish you all a successful participation at this conference.Thank you and God bless.
Patoma Admin by — November 24, 2022 in Pension 0
Africa Re, ASR partner for $10m political, trade credit risks in Africa, Middle East

CAPTION:
L- Group Managing Director of Africa Re, Dr Corneille Karekezi and Chief Executive Officer of Africa Specialty Risks, Mr  Mikir Shah,
By Favour Nnabugwu
African Reinsurance Corporation, Africa Re and Africa Specialty Risks, ASR, have signed pacts on the provision of Political Risk and Trade Credit Insurance.
The partnership on the two risk will go through an Underwriting Authority Agreement which brings in a $10 million multi-year capacity for risks situated in Africa and the Middle East.
The ASR team will write, on behalf of Africa Re and other (re)insurance underwriting capacity providers, Political Risk and Trade Credit in accordance with the terms of the Binder Agreement.
ASR suggests that its partnership with Africa Re reflects a shared mission to deepen the Africa (re)insurance market and is a testament to the two firms’ resolve in supporting the goals of the African Continental Free Trade Area.
Group Managing Director of Africa Re, Dr Corneille Karekezi said Africa Re is committed to finding solutions to the problem plaguing the sector
Karekezi said,  “The partnership with ASR complements our existing relationships and reflects our commitment to identifying solutions to industry challenges.
“The dearth of underwriting capacity to cover insurance against the prevalent political and trade credit risks in Africa is one of key impediments to attracting the much-needed investment for economic development in Africa.”
On a related note, ASR recently announced that it entered a partnership agreement with Moroccan reinsurer Société Centrale de Réassurance.
A joint statement said that the pair will be combining capacities to write multi-business line coverage across Africa and the Middle East, with the joint capacity being led by the ASR team outside of Morocco for a proportion of SCR’s capacity.
The Chief Executive Officer of Africa Specialty Risks, Mr  Mikir Shah, said ASR is very pleased to enter into agreement with Africa Re.
Shah who was pleased with partnership said, “Partnering with Africa Re is an exciting time for ASR as we continue to protect the continent from a myriad of risks and increase our footprint in Africa.
“This partnership will elevate the protection we are able to provide to international and local organisations. We look forward to working with Africa Re, and continuing our work in filling the insurance gap in Africa.”
Patoma Admin by — November 24, 2022 in Insurance 0