All Posts in "Day: December 21, 2022"

CBN revises individuals cash withdrawal limits to N500,000 weekly

By Favour Nnabugwu
The Central Bank of Nigeria, CBN had revised the cash withdrawal limits for individuals to N500,000 weekly from  N100,000 across all payment channels.
The apex bank also revised the cash  withdrawal limit for corporates to N5 million weekly from  N500,000.
CBN in a letter to all Deposits Money Banks and other financial institutions, Payment Service Banks, Primary Mortgage Banks, Microfinance Banks, and  Mobile Money Operators and agents signed by Director of Banking Supervision, CBN, Haruna Mustapha.
According to the regulator, the directive supersede that of December 6, 2022 and would take effect nationwide from January 9, 2023.
The Circular stated:”Following our circular BSD/DIR/PUB/LAB/015/069 dated December 6, 2022 on the above subject and based on feedback received from stakeholders, the CBN hereby makes the following reviews:
The maximum weekly limit for cash withdrawal across all channels by Individuals and corporate organizations shall be N500,000and N5 000,000 respectively.
” In competing circumstances where cash withdrawal above the limits in (1) above is required for legitimate purposes, such requests shall be subject to a processing fee of 3 percent and 5 percent for individuals and corporate organizations, respectively.
“Further to (2) above, the financial institution shall obtain the following information from the customer, at the minimum, and upload same on the CBN portal created for the purpose:
“Valid means of identification of the payee (National ID, International Passport, or Driver’s License) Bank Verification Number (BVN) of the payee Tax identification Number (TIN) of both the payee and the payer.
” Approval in waiting by the MD/CEO of the financial institution authorizing the withdrawal.
“Third party cheques above N100, 000 shall not be eligible for payment over the counter, while the extant limit of N10 million on clearing cheques still subsist.
” Kindly further note the following:
Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision, Other Financial Institutions Supervision and Payments System Management Departments as applicable.
“Compliance with extant AML/CFT regulations relating to KYC, on-going customer due diligence, currency and suspicious transaction reporting etc. |g mandatory in all circumstances.
“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc ) to conduct their banking transactions.
“Bank and Mobile Money Agents are important participants in the financial system, enabling access to financial services in underserved and rural communities They will continue to perform these strategic functions, in line with existing regulations governing their activities
“The CBN recognizes the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cash-less society
“All banks and OFIs are to note that aiding and abetting the circumvention of this policy will attract severe sanctions.
“The above directives supersede that of December 6, 2022 and take effect nationwide from January 9, 2023.
Patoma Admin by — December 21, 2022 in Banking & Finance 0
Leadway Ass. leads three others on N13.3bn Nigeria Police’s Group Life of 318,319 officers

 CAPTION
L-  Minister of Police of Affairs, Mohammed Maigari Dingyadiand the Group Managing Director of Leadway Assurance Plc, Mr Tunde Hadsan-Odukale
By Favour Nnabugwu
Leadway Assurance plc is leading three others insurance companies to underwrite over N13. 3billion Nigeria Police Force (NPF) Group Life of 318,319 officers
The Federal Executive Council has approved the sum of N13,321,742,038.83 for Group Life Assurance for the 318,319 officers and men of the Nigeria Police.
This was a confirmation of patomabusinessonline.com’s exclusive report on the repackaging of indemnity for Ministries, Departments and Agencies, MDAs of 4 – 5 insurance companies on a particular risks.
The figure was made known to State House correspondents at the end of the weekly Council meeting, presided over over by President Muhammadu Buhari at the Council Chamber, Presidential Villa Abuja.
The Minister of Police of Affairs, Mohammed Maigari Dingyadi, told journalists that the import of the memorandum that conveyed the request to FEC was to keep the Police motivated and encouraged.
“Leadway Assurance PLC as the lead underwriter and three others as co-underwriters, in the total sum of N13,321,742,038.83. This is going to cover our police population of 318,319 officers and men”, he disclosed.
He said, “I had the pleasure and honour to inform you that today I have submitted one very important memo to the Federal Executive Council, which has to do with the award of contract for the engagement of insurance underwriters and brokers, with the coverage of Group Life Assurance Scheme for the Nigerian Police Force for the 2022/2023, in favour of Messrs.
The Minister also stated that his memorandum to Council on the almost forgotten former employees of the federal government received the blessing of the meeting, which approved a N4,774,517,205 pensions and gratuity arrears, to be administered by the Pension Transitional Arrangement Directorate (PTAD).
“Needless to reiterate, we made this impassioned appeal to Council today that these people deserve to be treated the way that pensioners of Nigeria Airways and all of those of NITEL had been treated and the amount outstanding as their pensions arrears and gratitude was N4,774,517,205 and essentially on compassionate grounds, Council approved that PTAD should take up this matter, subject to verification, and pay them these monies and also the monthly pensions to be verified, estimated now at N41,096,700”, he said.
Patoma Admin by — December 21, 2022 in Insurance 0
FG tasked to allow private sector lead Lekki logistics infrastructure

By Favour Nnabugwu

 

 

The Nigeria Export Processing Zones Authority (NEPZA) and  stakeholders in Free Trade Zones stakeholder to allow private sector to drive the development of logistics infrastructure for the Lekki business corridor.

Managing Director of NEPZA, Prof Adesoji Adesugba at the 2022 NEPZA Annual Free Trade Zone Meeting on Monday in Lagos.

The annual meeting is an avenue where Zone Managements, Chief Executives Officers of Enterprises in the zones, top management staff of the Authority and free zones stakeholders take stock of the successes and challenges of their operations.

Adesugba, also the Chief Executive Officer of NEPZA, explained that the Lekki part of Lagos was arguably the country’s most profitable economic gateway as it warehoused some of the potentially great free zones that would drastically turnaround the economic fortunes of the country in few years.

The NEPZA boss said the government’s evolvement in the construction of double carriage road along that axis was greatly commendable and acknowledged, but however, noted that the government would save its hard-earned resources if it could completely divest its stake to the private sector for efficiency and profitability.

“I would like to reiterate that the federal government will not want a repeat of the experience of the Apapa Port on the Lekki corridor when the Deep-Sea Port and the Dangote Refinery become operational.

“We are already getting late, but the government could quickly salvage the situation by allowing the private sector to deliver world class multi-facet logistics infrastructure for easy evacuation of goods and services.

“The area requires standard rail infrastructure and double carriage way for heavy duty vehicles servicing all the zones located in that corridor.’’ Adesugba said.

Furthermore, all the participants were in agreement with the NEPZA boss, as according to them, the huge investments that sit on that corridor will not make any significant impact on the economy in the absence of smooth link with the corridor.
Meanwhile, Adesugba expressed delight on the absolute support of the administration of His Excellency, President Muhammadu Buhari GCFR that led to the Authority’s recorded success so far.

“Recall that the president at the just concluded 30th Anniversary of the Free Trade Zone in Nigeria and the 7th AEZO meeting publicly attested to the fact that NEPZA and the free zone scheme had positively contributed to the success and achievements of his economic policy.

“We are elated by this commendation and we can only be encouraged to do more to fast track the industrialization process.

“We have with the support of government, the zones’ management, and the staff of the authority, carried out a number of reforms and re-directed our strategy plan, resulting in the several successes we have recorded’’, he said.

The chief executive officer used the occasion to assure management of zones and other stakeholders of NEPZA’s readiness to continually protect their investments, adding that the Authority would assiduously work within its mandate to ensure that investors in the country’s free zone continued to harvest quality returns on their investments.

Patoma Admin by — December 21, 2022 in Industry, Trade & Investment 0
Top 10 insurers in Non-Life contributed 64.2%, top 3 Life companies generated 49.3% in Q3 2022

By Favour Nnabugwu
Insurance companies are in their strides making waves as top 10 underwriters in the Non-Life section of the industry underwrite 64.2 per cent of the gross premiums income in the third quarter 2022
This was an increase its position of 60.8 percent recorded in the same quarter last year.
The Synopsis of the Insurance Market Third Quarter 2022 released by the National Insurance Commission, Naicom also showed that top three Insurers contributed 49.3 percent of all premiums generated during the period compared to 45.4 percent  recorded in the previous period.
In the same vein, the Non-life business had a record of 0.2 percent of its market share contributed by the least three of the underwriters, same as in the prior period of second quarter of the year while about 31 percent of the Non-life gross premium was contributed by its top three Insurers, up from about 27 percent it recorded in the previous quarter.
In the overall analysis, the market maintained a fairly balanced concentration especially in the Non-Life section of the industry
From the ongoing, the market Statistics of the third quarter 2022 has revealed some quality developments in the industry performance indicators in terms of growth, retention, claims management experience and profitability, at levels of which the industry could be ruled as
profitable, sound and stable.
Naicom also said that the on-going digitisation and market deepening measures of the Commission, the outlook remains strongly positive
The market concentration as shaped by competition and other factors in the industry revealed a rather similar scenario compared to the second quarter of 2022, indicating that the market control setting has not significantly changed in the last three months
In the overall gross premium of N532.7billion generated Ithe third quarter 2022, claims settlement took a direct reflection of the market premium retention as Motor Insurance retained its lead, posting a claims settlement ratio 91 percent
This is followed by Miscellaneous insurances reporting about eighty one per cent as paid claims ratio to all reported claims during the period while General Accident 74.4 percent
Marine & Aviation 74.3 percent and Fire Insurance 59.6 percent trailed in that order.
The Oil & Gas business stood out as the most improved portfolio in this respect at 65.3 percent of claims settlement ratio, an increase of 41 points compared to its position of 23.9 percent recorded in the corresponding period of 2021.
The experience in Oil & Gas corner of the market with respect to claims settlement could be attributable to the increasing capital and, underwriters’ growing confidence and dexterity in the market.
Similarly, the claims settlement ratio of the life business stood at 95 percent while the aggregate industry average was recorded at 85.4 percent during the quarter.
In the Life business segment, the least three companies recorded a proportional contribution of about 0.1 percent, same
The Insurance market indeed remained profitable during the period, recording an overall industry average of 54.5 percent, a noteworthy performance though lesser, compared to 46.7% recorded in the corresponding period of preceding year.
The Non-Life segment stood at 43.5% better than in the Life business which reported a net loss ratio of 63.6 percent during the period.
The sustained lower net loss ratios of the non-life which is relatively a short-term business, is good for the market as it could quickly register some good market image and confidence in the industry.
Patoma Admin by — December 21, 2022 in Insurance 0