All Posts in "Others"

By Favour Nnabugwu

The Central Bank of Nigeria (CBN) has reviewed the appointment criteria for Chief Compliance Officers in Merchant Banks and Regional Banks (Commercial and specialized).

This is according to a circular issued by the apex bank dated October 9, 2020, and signed by its Director of Financial Policy and Regulation Department, Kevin Amugo.

According to the latest notice, Merchant banks and Regional banks are hereby granted dispensation to appoint CCOs on a grade not below an Assistant General Managers.

However, the CCOs will report directly to the ECO of the financial institutions who have sole responsibility for compliance matters in the bank.

This latest action by the CBN is the sequel to consultations and engagement with stakeholders emanating from its earlier circular referenced FPR/DIR/GEN/CIR/06/004 of September 28, 2016, in which the tentative requirements for Executive Compliance Officers and Chief Compliance Officers of deposit money banks were mooted

Patoma Admin by — October 23, 2020 in Banking & Finance 0

By Favour Nnabugwu

The Minister of Transportation, Mr. Chibuike Amaechi said government had done a lot to improve the economy of the country

Amaechi said a lot is being done to improve the economy, create jobs for Nigerians and build more infrastructure to push the overall growth of the country in different sectors.

“We have done a lot in Infrastructure development and employment. The massive infrastructural development in the Railway sector has employed so many Nigerians. Also don’t forget that in 2011/2012, the out of school children In Nigeria was 10 million which has now been reduced to about 3 million.

“In 2013, the cost of Tomato was extremely high, and the then Minister of Agriculture invited me for a meeting and he said to me, ‘can you provide railway transportation from Kano to Lagos?’ I called the MD of Railway to make the trip from Kano to Lagos more regular, and in one week the price of tomato crashed”, he said.

The Minister for Transportation further gave insight on the connection between economic development and defence, in the light of security challenges.

Amaechi stated this when he delivered a lecture to participants of National Defence College Course 29 in Abuja, Friday.

“The only way the army can rest and the police can do their job effectively is when the economy begins to grow. When people are properly engaged with different activities, they won’t think of engaging in criminal activities.

“The Army is not supposed to give internal security but the Police is overwhelmed by the level of crime rate, hence the Army has consistently been rescuing Nigerians.

“Economic growth reduces crime and when there is no crime, the Military and police can rest”, Amaechi added.

As Minister of Transportation, Amaechi said a lot is being done to improve the economy, create jobs for Nigerians and build more infrastructure to push the overall growth of the country in different sectors.

“We have done a lot in Infrastructure development and employment. The massive infrastructural development in the Railway sector has employed so many Nigerians. Also don’t forget that in 2011/2012, the out of school children In Nigeria was 10 million which has now been reduced to about 3 million.

“In 2013, the cost of Tomato was extremely high, and the then Minister of Agriculture invited me for a meeting and he said to me, ‘can you provide railway transportation from Kano to Lagos?’ I called the MD of Railway to make the trip from Kano to Lagos more regular, and in one week the price of tomato crashed”, he said.

The Minister for Transportation further gave insight on the connection between economic development and defence, in the light of security challenges.

“The only way the army can rest and the police can do their job effectively is when the economy begins to grow. When people are properly engaged with different activities, they won’t think of engaging in criminal activities.

“The Army is not supposed to give internal security but the Police is overwhelmed by the level of crime rate, hence the Army has consistently been rescuing Nigerians.

Economic growth reduces crime and when there is no crime, the Military and police can rest”, Amaechi added

Responding, the Commandant, National Defence College, Abuja, Real Admiral M.M Kadiri, expressed the Defence’s appreciation for honouring their invitation and for enlightening them on the role of economic and infrastructure development in curbing crime.

Patoma Admin by — October 23, 2020 in Others 0

By Favour Nnabugwu

African insurance premiums set to rise as high as 5 percent as some of the premiums are 5 percent generated digitally, following the increase in the realization of the value of digital solutions.

In the fore-front of the digitalization, is the Nigeria’ insurance regulator, the National Insurance Commission, NAICOM.

Africa Insurance Organisation (AIO), in its ‘Insurance Purse’ digitalization will enhance the appeal and affordability of risk transfer products in

Underwriting and risk management will benefit from improved access to data and analytics, the study found.

At the same time, technology will help streamline the insurance value chain and enhance the efficiency of administrative processes.

Ultimately, states the report, digitalisation is expected to boost awareness and demand for insurance solutions, eventually translating into higher insurance penetration in Africa.

Secretary-General of AIO, Mr.Jean Baptiste Ntukamazina,  said: “During the Covid-19 crisis, digitalisation in Africa, as in other economies, has demonstrated its benefits.

While regulators and policymakers recognised the systemic nature of the insurance industry, the industry demonstrated its ability to continue to provide its services to policyholders without any disruption.

“Ultimately, this will reflect in an acceleration of the application of the new technology across Africa,” he added.

Group Managing Director of Africa Re, Dr Corneille Karekezi, said that Africa Re, “We are keen to promote, accompany and support the digitalisation of our core markets”.

“We are seeing pronounced differences in the degree of digitalisation across African insurance markets and its players.”

“The advanced technology helps insurers to access new client segments, improve their services and differentiate their products to overcome the focus on pricing that has eroded many of our markets in the past years.

Also leading the Nigerian insurance industry, Commissioner for Insurance, Mr Sunday Thomas confirmed that the framework for digitalisation of operations, such as IT Standards, Web aggregators and Regulatory Sandbox are in progress saying as the insurance industry positions itself for Post COVID-19 era, there must be a paradigm shift from the usual way of business practice.

Thomas charged operators in the insurance industry to deal with unethical business behaviour in the sector, with a view to repositioning the industry for post-COVID-19 era.

He said that as the insurance industry positions itself for Post COVID-19 era, the demands of the insuring public would require sound work ethics for optimal  performance.

The NAICOM boss said the year had, no doubt, been a very challenging one for the sector, individual households and the economy at large, as a result of the pandemic.

“ For us in the insurance sector, what this situation has thrown up is that there must be a paradigm shift from our usual way of business practice.

“It is, therefore, imperative on us to embrace and align our businesses to the new world order, if we must be seen to be relevant,” he emphasised.

According to him, “Intermediaries, business sincerity and customers’ satisfaction must be central to the industry’s core business principles”.

“Let me task you on business etiquette and ethics in all your professional dealings, as the unprofessional conduct of a few amongst you is posing great danger to our collective integrity as an industry.

“Over the years, a lot has been put into improving the fragile image and perception of insurance in this country.

“The commission has always and will at all times extend her full support to all stakeholders in the industry in their drive for business growth and development.

“NAICOM is open to new ideas and shall continue to introduce new reforms and initiatives in line with international best practices that will strengthen our institutions”.

According to him, “NAICOM has also adjusted to the challenges and/or opportunities which the pandemic has imposed on the socio-economic and business environment”

He said that the automation of the commission’s processes for prompt service delivery had been fast tracked.

Thomas said the e -portal for the regulatory submission of various applications by operators and obtaining of e -approvals was at its final stage.

Thomas said it could not have come at a better time than now when the heat of the COVID-19 pandemic was taking its toll on the financial sector.

Patoma Admin by — October 23, 2020 in Insurance 0
Covid-19: Global economy to suffer $7,000bn losses..Costs insurers, reinsurers $50bn

By Favour Nnabugwu

Global economy is to suffer a whopping of $7000 billion in losses, following the coronavirus pandermic that hit the world in the last eight months.

The Chief Economist of the Organization for Economic Co-operation and Development (OECD), Mr. Laurence Boone said the coronavirus pandemic is expected to have lasting effects on the global economy.

The world GDP is to decline by 4.5 percent in 2020 and rebound by an estimated 5 percent in 2021.

“In terms of cost, the losses caused by COVID-19 will reduce global GDP by 7 000 billion USD for the period ranging from November 2019 to the end of 2021”

According to him, “The decline in activities in Europe was less significant than expected in Q2

In the same manner, the COVID-19 pandermic has cost insurers and reinsurers between $35 bn and $50 bn as at 30 June 2020, according to Standard & Poor’s

The first twenty reinsurers alone have sustained a loss of roughly $12 bn that is to approximately 30 percent of the total amount for the entire market.

Most of the losses are accounted for by the risks of major event cancellation, property loans, credit, business interruption and aviation.

The rating agency says insurance professionals are bound to sustain additional Covid-19 losses in the upcoming months.

Meanwhile, AM Best published the list of the top 50 global reinsurers in 2019. Swiss Re ranked first for the second consecutive year. The Swiss company recorded a total of 42.228 billion USD in gross written premi-ums, an increase of 16% compared to 2018.

This performance goes back to the growth of the non-life activity in the Americas and EMEA (Europe, Middle East and Africa). These two regions account for 25.1 percent of Swiss Re’s revenues.

Munich Re takes the second position in the ranking with $37.864 bn in premiums. Hannover Re retains the third place with $25.309 bn in premiums.

AM. Best has pointed out that the top ten reinsurers generate 69 percent of earnings. The average com-bined ratio of all companies stands at 102.4 percent a slight deterioration compared to 2018 (100.9percent).

Patoma Admin by — October 23, 2020 in Insurance 0
#ENDSARS#: NECO moves October 22,23,24 to November

The National Examinations Council (NECO) has rescheduled its examinations scheduled for Oct. 22, 23 and 24 to November, owing to insecurity and curfew imposed by some states.
Mr Azeez Sani, Head, Information and Public Relations Division (NECO) said this in a statement made available to newsmen in Abuja on Wednesday.

Sani said that the affected papers were now scheduled for Nov. 17, 18 and 19.

”This is to inform the general public and especially candidates that the National Examinations Council (NECO) has been constrained by circumstances beyond its control, to reschedule the papers meant for Thursday, Oct. 22, Friday, Oct. 23 and Saturday, Oct. 24.
”The affected papers are now scheduled for 17th, 18th and 19th November 2020.

”The examination time table for these papers will be made available subsequently.

“These changes were due to the security challenges, which led to the imposition of curfew and closure of schools by some state governments in order to safeguard lives and properties,’’ he said.

Sani said that the development became difficult for the council to move examination materials across the country.

”The Council prays that the examinations will continue on Tuesday, Oct. 27, all things being equal, with the papers as originally scheduled in the examination time table,’’ he said

Patoma Admin by — October 21, 2020 in Education 0
PenCom applauds PFAs for ROI in eight months

Despite the disruptions caused by the COVID-19 pandemic, which affected most aspects of the Nigerian economy, Pension Fund Administrators (PFAs) in the country performed satisfactorily on Returin On Investment between January and August 2020.

According to the report from Pension Nigeria, no PFA had negative returns on investment (ROI) during the period under review, indicating that all PFAs for Fund I, II, III, and IV recorded positive returns.

This is quite impressive, given that the pandemic had impacted most aspects of the Nigerian economy negatively, causing a 1.95% (year-to-date) decline of the NSE’s All Share index, while the country’s Gross Domestic Product (GDP) contracted by 6.1% in the second quarter of 2020.

12 out of the 22 PFAs performed above the average ROI of 9.28%, for all the funds put together.

NLPC Pension Fund Administrators Limited topped the list (20.33%), followed by Investment One Pension Managers Limited (14.5%), Veritas Glanvills Pensions limited (12.02%), AXA Mansard Pensions (10%), OAK Pensions Limited (9.7%).

Others include Leadway Pensure PFA Limited (9.67%), Crusader Sterling Pensions Limited (9.65%), AIICO Pension Managers (9.61%), IEI-Anchor Pension Managers Limited (9.51%), Fidelity Pension Managers (9.46%), Stanbic IBTC Pension Managers (9.45%), and Radix Pension Fund Managers Limited (9.28%).

Meanwhile, 10 PFAs performed below the average ROI, with Premium Pensions Limited (4.96%) at the bottom of the list, followed by APT Pension Fund Managers (5.81%), First Guarantee Pensions Limited (6.46%), TrustFund Pensions Plc (6.61%), ARM Pension managers (7.0%).

Other Administrators that made the list includes, Nigeria University Pension Management Co. Limited (7.23%), Pension Alliance Limited (7.40%), FCMB Pensions Limited (7.60%), Sigma Pensions (8.86%), NPF Pensions Limited (8.95%).

Also, in the Fund I, Veritas Glanvills Pensions Limited topped the list in average return on investment on Fund I with 21.11%, followed by Stanbic IBTC Pension Managers 12.33%, Sigma Pensions Limited 11.95%, OAK Pensions Limited 11.59%, and IEI-Anchor Pension Managers 9.88%.

Fund II – NLPC Pension Fund Administrators Limited led the pack with an average return on investment of 24.32%, followed by IEI-Anchor Pension Managers Limited 11.59%, Crusader Sterling Pensions Limited 10.74%, Investment One Pension Managers Limited 10.65%, and Nigerian University Pensions Limited 10.25%

Fund III – NLPC Pension Fund Administrators Limited dominated the top 5 list with 24.84%, followed by Investment One Pension Managers Limited 17.58%, Radix Pension Fund Managers 14.78%, Fidelity Pension Managers Limited 12.45%, and AXA Mansard Pensions Limited 11.46%.

Fund IV – NLPC Pension fund Administrators Limited maintained the lead in the top 5 PFAs with 23.59%, followed by Investment One Pension Managers Limited with 15.28%, Fidelity Pension Managers Limited with 12.3%, NPF Pensions Limited with 10.98%, and Veritas Glanvills Pensions Limited with 9.74%.

Patoma Admin by — October 21, 2020 in Others 0
Arik Air, others cancel flights

Arik Air has announced the suspension of it flights due to the 24 hour curfew imposed on Lagos State by the Governor, Mr Babajide Sanwo- Olu.

This is just as some foreign airlines have also announced cancellation of flights due to the current protest and unrest in the country.

The airline Communication Manager, Mr Adebanji Ola yesterday said : “Arik Air has cancelled all its flight operations for Wednesday, October 21, 2020 in compliance to the 24 hours curfew announced by the Lagos State government on Tuesday, October 20, 2020”.

“All booked passengers on the cancelled flights are advised to reschedule their flights for later dates at no extra cost”

The Lagos State government announced a 24 hours curfew effective 4:00pm October 20, 2020″.

Recall the 24 hour curfew took effect yesterday, Tuesday throughout the state to forestall further burning of government and private properties.

Thugs have infetrated and hijacked the protest that started peacefully throughout the country.

Other airlines might likely join in the cancellation of flights as prospective passengers will not be able to access the Airports.

Meanwhile, some foreign airlines have announced the suspension of flights to Nigeria due to the current protest. United States owned airline, Delta, in its advisory said flight DL248 ATLLOS for October 19, 2020 scheduled to arrive LOS on Tuesday Oct 20, 2020 will not operate due to the 24-hour curfew imposed by the Lagos State Government.

According to the airline, “Consequently, Flight DL249 LOSATL scheduled to operate today October 20, 2020 has also been canceled. Further details on flight operations will be duly communicated. We truly regret any inconvenience”

Also Ghana based airline, Africa World Airlines (AWA) yesterday said due to “curfew in Lagos, tonight, we will cancel flights for October 20 and October 21, 2020”.

The airline further said that it would be monitoring the situation and will be updating passengers

Kenya Airways has also cancelled flights to the country. The airline said : ” We regret to inform you that KQ533 scheduled to depart 21/Oct/2020 from LOS – NBO has been canceled due to the 24Hrs curfew imposed by the Lagos State Government”

“We implore you to communicate with your guests as soon as you can. Thank you for your patience and understanding”, the airline added.

It also said in a statement that it was planning to send out another communication with regards to “re-protection and flight operations for the affected guests” as soon as they have an update.

Patoma Admin by — October 20, 2020 in Aviation 0
Senate confirms Aisha Dahir-Umar as substantive PenCom DG

The Senate has confirmed the appointment of Mrs. Aisha Dahir-Umar, as the substantive Director-General of the National Pension Commission (PenCom).

Another nominee who was also confirmed by the Senate was Dr Oyindasola Oluremi Oni, from North Central as Chairman.

Also confirmed were Clement Akintola (South-West); Ayim Nyerere (South-East) and Charles Emukowhale (South-South), as commissioners of the PenCom board.

The Senate, however, rejected the confirmation of Hannatu Musa (North-West) because she was unable to present her discharge certificate from the National Youths Service Corps.

Until her confirmation, Dahir-Umar, from the North-East geopolitical zone, held the position in acting capacity.

Patoma Admin by — October 20, 2020 in Others 0
SEC Sets January 2021 for Implementation of Corporate Governance Guidelines

The Securities and Exchange Commission, SEC, has issued a Corporate Governance Guidelines (SCGG) and a template (revised Form 01) for reporting compliance with the Securities which becomes effective from January 2021

Par of the Guidelines indicate that Membership of the Board shall not be less than five (5) and to safeguard the independence of the Board, not more than two members of the same family shall sit on the Board of a public company at the same time

The guidelines also stipulate that in appointing a person to the Board, Shareholders should be provided with information on any real or potential conflict of interest, including whether a proposed appointee is an interlocking director, adding “The letters of appointment should cover the following: Synopsis of Director’s rights; Director evaluation programme used by the company, and Any other contractual responsibilities”.

On sustainability, the guideline stated “Companies shall recognise corruption as a major threat to business and to national development and therefore as a sustainability issue for businesses in Nigeria. Companies, Boards and individual directors must commit themselves to transparent dealings and to the establishment of a culture of integrity and zero tolerance to corruption and corrupt practices.

“In order to foster good corporate governance, companies shall engage in increased disclosure beyond the statutory requirements in the CAMA”.

In a bid to minimise risk in the operations of companies, the guidelines states that the annual risk-based internal audit plan shall: address the broad range of risks facing the company, linking this to a risk management framework; ii. identify audit priority areas and areas of greatest threat to the company; indicate how assurance will be provided on the company’s risk management process; and indicate the resources and skills available or required to achieve the plan.

Recall that the Nigerian Code of Corporate Governance (NCCG) of 2018 issued by the Financial Reporting Council (FRC) of Nigeria effectively replaced the Code of Corporate Governance for public companies issued by the Securities and Exchange Commission (SEC).  The FRC had also issued a template for reporting compliance with the NCCG 2018

According to the SEC, “Public Companies are by this circular advised to comply with the requirements of the NCCG 2018 and also note that compliance with the SCGG/revised reporting template is mandatory”

Patoma Admin by — October 20, 2020 in Industry, Trade & Investment 0
Nigeria’s Insurance Market Offers Significant Potential Despite Headwinds, A.M.Best

Insurance market in the country is said to have a developmental potentials of growth going by its increasing population and its position as Africa’s largest economy  according to a new report from ratings agency AM Best.

The agency though regretted that insurance industry in the region failed to catch in the the potentials but the industry will use the mandatory insurance to speed up its growth

In a new Best’s Market Segment Report: Nigeria’s Insurance Market Offers Significant Potential Despite Headwinds, AM Best notes that, due to the Covid-19-driven economic slowdown, the insurance market regulator, the National Insurance Commission (Naicom), has agreed to further delay its revised plans to strengthen market capitalisation and limit the volume of premium flowing out of the country.

“Nigeria has failed to deliver on that potential historically, due in part to the volatility of growth in the country’s real gross domestic product, coupled with the sporadic enforcement of mandatory retail insurance lines”

AM Best warns: “If Naicom strictly enforces the new requirements, smaller insurers will face significant pressure to merge with larger players.”

But overall, it believes successful implementation of the capital standards “would be favourable for the sector, as they should drive a market-wide strengthening of capital adequacy”.

It suggests: “Market consolidation and the resultant reduction in competition should help alleviate fierce pricing pressure and improve underwriting discipline.”

Patoma Admin by — October 20, 2020 in Insurance 0